I don't think it is a conspiracy theory. I think some coaches do it as a matter of habit to raise the image of their recruiting and themselves. There's some "logic" to it. If you are getting highly ranked classes then maybe the highly rated recruits will be more inclined to listen. So even if you get a guy overrated you may actually snipe some good players. I'm not even disputing the legitimacy of trying it if you don't have other skill.
IMHO, image was all Jones really had. He didn't have coaching talent, great leadership ability, good player management skills, football brilliance, great talent evaluation, etc. He had his used car salesman schtick. By nature they try to make their lemons look like premium rides.
You always had more hope in Jones than I did. There was always something about him that wasn't right to me. Somewhere between sickeningly corny... and downright slimy.