I think Dave Smith did a pretty good job of proving himself in his years at Canisius. In his first ten years, his teams' records improved from a less than-mediocre 10-23-2, finishing 7th in Atlantic Hockey, to 18-12-7, finishing second. (By contrast, in Ted Donato's first ten years, his Harvard teams went from 21-10-3, second in the ECAC, to 10-17-4, 11th place).
There was a time, not so long ago, when RPI was able to offer home games streamed over the Internet on RPI TV. I would think this gave RPI a considerable recruiting advantage, since they could tell parents that if their kids came to RPI, they could watch the games on the Internet, a claim which most other schools couldn't match. But now the NCAA has decreed that everybody has to use the ESPN feed, so RPI's advantage has been negated.
The Field House was a great facility in its day. As I recall, it was once the largest college-owned hockey facility in the country. RPI actually hosted the NCAA tournament in 1959, back when the tournament was limited to four teams.
I know, that was then and this is now. Is a new facility the answer? Maybe. RPI built the ECAV, and Ralph Isernia and Mark Gilbride have been able to turn out consistently winning football and basketball teams at that facility.
Could Dave Smith produce consistently winning Division I hockey teams if he had a new facility? That's a hard question to answer.