It's not but Ohio State and Michigan are both more urban schools. Penn State is certainly more like them than Nebraska and Wisconsin, but still not enough like them.
No question they could, maybe even should, but the sport has been Ohio State and Michigan and the SEC and two ACC outliers for decades, plus Pete Carroll. Penn State hasn't won a title in 40 years. They've only won four Big 10 titles, same as Northwestern in that time frame. And now it's even harder with the West Coast schools. Not saying the expectation shouldn't be there, but until 14 days ago Franklin really was as good as it has ever gotten for Happy Valley since the '80s. What he did last season is about all you can expect for sure, much like you can't expect/plan for the Phllies to not get eliminated early after a great regular season.
Not saying it can't be done, and with the portal and NIL it should be able to be done faster (though the new rules will blunt the impact of NIL, every school has the same revenue-share to play with). But it could also go badly for several years and multiple new coaches, just like it did at Michigan and Texas and Oregon and Florida State.
And, much as a baseball team is only as good as its owner, I don't believe the PSU board/President/AD is actually elite/aligned like you have to be (and has never been during Franklin's entire tenure, clearly).