Well that's kind of what you'd be saying if Vic took the job at Tennessee last year. He was officially offered and said no mostly because that's even further to the state of Texas.
While it's true they're getting an awesome arena and that they're in a recruiting hotbed - Austin also has tons of other sports going on on a Sunday. They might not necessarily come supporting the women's basketball team if there's a better option. Volleyball, softball, tennis, baseball, etc. Those could all be more interesting than women's basketball. A national championship tennis team, a historically strong baseball program, elite in volleyball too.
Tennessee has the fans who come out for women's basketball even when they're losing, their stadium isn't a drastic decline from Texas', and I don't think the area is drastically lesser in recruiting either. I also don't think Tennessee hired Kellie out of a lack of emphasis for WBB. Vic and Jeff both turned them down, there was no other option. I also think the Tennessee athletic department emphasizes WBB far more than Texas.
So yeah....... if given the option of Tennessee vs Texas for Vic, I'd say Tennessee is better. One thing I do agree with you on is that Kellie needs to do better in recruiting, but this is assuming all problems at Tennessee right now is temporary.