The one concern I’d have is that Mike Malone’s never really hit the recruiting trail before like Billy Donovan has but that’s not really a huge concern when you’re the school Michael freaking Jordan went to.
NIL has kind of made blue blood status meaningless I think we're seeing that with some of the B1G and SEC teams that are historically around 10-25 becoming top programs. I really am unsure how much weight "MJ's school" carries with Gen Z and Alpha. Too much recency bias towards some of the other schools I think.
I've always thought that Malone was a hell of a coach. He's consistently elevated the level of play of his players, and college is more about building than maintaining nowadays - the really good players are gone in a year or two. I think recruiting might actually go well for him because he can always search for a specific type of player and get him pretty quickly, as opposed to the NBA where roster construction takes a little more time. As far as "recency bias" goes, it wasn't that long ago that the Nuggets were hoisting the trophy, so he has that going for him.
NIL has changed things a lot, but I'd say that in general it's to the detriment of the mid-majors more than the Blue Bloods.
Blue Bloods are always going to be top 25 programs (ok, LOL UCLA). The thing NIL is rapidly changing is that football money is coming in and giving a lot of schools where basketball was nice to have in the offseason into major players on the recruiting trail. You are right it is costing mid-majors as this leads to a ton of money floating around to poach students who don't leave for the Association but show growth potential. But it also means the SEC and B1G are going to throw tons of money around and compete with "the school recruits itself" programs if they don't have a top tier coach.