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As someone else pointed out earlier, LHN isn't going to hurt the other schools in recruiting because TX basically already takes whatever they want as far as in-state recruits go, and everyone else fights over the scraps. It's been that way for years, and LHN doesn't affect that at all.
If I say yes to your premise that they get whoever they want, then why give them any more advantages? LHN will be part of national cable packages, not only will they be able to get the top Texas players, but they are in the homes of the top players from all over the country.
Rather than take 20 Texas kids why not take the 10 top players in Texas and the top 10 players in the rest of the country?
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