First, regarding facilities: we've never really been there. Players don't care if the stadium seats 75,000 or 90,000...just provide an exciting atmosphere. The things that have actually mattered to recruits, like academic centers, operations centers, training facilities...we've always been behind. Yeah, we eventually upgrade and try to catch up, but by then the real football powers have moved on to something bigger.
Second, with regards to paying players: if we've ever done it, we've never done it well. Figure out how the big boys do it, and join the club.
Finally, as for the population of SC: Yes, we are a small state, smaller than Metro-Atlanta. Clemson is in the same state we are. Hell, they are in a fairly rural part of our small state...but they've consistently out recruited us, and it isn't really close, throughout my life time.