Oregon has always been a hard scholarship to score. It's even tougher for in-state kids to break through. Why take a chance and use fiscal resources on a domestic high school kid when you can get a Canadian, Australian, British, or Spanish U20 with international experience for next to nothing because their family or their government is footing most of the bill?
95%+ of "next great American distance talent" kids flame out in college or never reach their potential. Track doesn't have the budget to absorb bad recruiting decisions like football does. The reality of NCAA coaching is that you can use money, facilities, and history to recruit athletes with talent but, it's all a crapshoot once they arrive on campus. Some kids cannot handle the pressure. Some can't manage academics/sports because both are far more intensive than in high school. Many find alcohol, sex, and parties more alluring than their childhood dreams of Olympic glory.
I don't know Jerry but, he certainly knows the pro side of the sport. Most of his staff are former pros. I would venture that they have an eye for talent that most college coaches don't and simply don't consider a lot of top high school kids because they lack fire, discipline, bravado, or some other "IT!" factor that screams future NCAA champion and pro potential. They might miss out on some great athletes but, they also won't be tied down by a lot of bad money committed to unfulfilled potential. Case in point, look at Colorado these days.