"For the same reason, it is more likely for the Colorado kid to have a pot-related eligibility issue. Maybe that likelihood is only 0.00001% higher, but it's higher. The coach elects not to accept that risk and gets cooked for it."
I'm going to agree with the 0.00001%, or maybe 10x that at 0.0001%, but still that is a horrible reason to factor into the recruiting decision. I'd take a quick tour of his social media any day over what state he happens to reside in. I'd go find some prom photos and maybe see who he hung out with and check their social media. I'm betting I'd be 1,000x more accurate than just picking states - no 1,000,000x more accurate.
This approach has absolutely zero to do with how one approaches a lower GPA kid. You have to look at the kid and look at his individual grades (what was his GPA junior year, senior year - trending better or worse) and check out test scores and the overall school test grades (to determine how strenuous the GPA is in the first place). I heard of lots of kids getting a little bit of love from a D1 when the coach pretty much understands the kid might take a 2 year tour at JUCO before arriving on campus.
All sorts of stands a program can, and should, take, but linking some generic high school kid with state politics in an effort to improve/protect the program is not the brightest approach.