The Provine guys probably are the last good players we had from Mississippi, and we hired their coach to get them. I think Lockhart was from Mississippi. He was very good. He was before the Provine group though. Kennedy has gone out of state almost exclusively it seems, though he's picked up a few in-state recently.
Prior to that, with Evans's first good teams, really the only in-state guy was Joezon Darby, and he was our 6th man. 3 of our starters were from Arkansas, one from Texas, and one from Louisiana.
Ultimately, our problem with basketball is the fact that our fans generally have always treated it as a second class sport and still do. That's why our facilities are so far behind (though they won't be 5 years from now), but it's the main reason we've sucked at it historically, much like Auburn and Georgia. It's nothing intrinsic about Ole Miss. It's just that the fans have never been big basketball fans.
I compare it a lot to baseball, because you see how quickly our fans responded when we had moderate success in baseball. The investment in the program took off. We had a good run in the late 90s/early 00s, but the fans never did more for the program other than showing up. Little actual investment was made in the program.