1) We aren't going to win more games with a different staff if Kelly is still the same coach.
You can't take one factor about why a kid picks one school over another because there are some many variables. That said, it is pretty obvious our limiting factor in getting coaches is the head coach himself because, unlike a large chunk of the top head coaches at other schools, Kelly's only real experience as a head coach has been at Cincinnati and ND. Hence his coaching tree, and assistant coaches tend to follow folks they worked with, is pretty limited.
2) By and large, pay is not a restricting factor in ND getting/keeping assistant coaches. Also, pay overall has little to do with quality. It has more to do with leverage than anything else.
Mike Elko, had he stayed, would have been the 5th highest paid assistant coach in the country. Alabama allegedly pursued Chip Long last year. Harry Hiestand was regarded as one of the best OL coaches in the country. Mike Sanford was well-regarded when he came here and ended up as a head coach.