Indiana is Indiana because of the decisions the program makes and has made for over 35 years. You don't stay terrible for a third of a century accidentally.
Saying they "could have been a problem" is like saying George Armstrong Custer "could have been president" if he had just avoided making bad decisions around Indians.
The Hoosiers had two choices. Just like keeping Bobby "the Bully" Knight too long, hiring Mike Davis, hiring Tom Crean, hiring Archie Miller, hiring Mike Woodson, and dozens of smaller decisions, doing the wrong thing was inevitable.