I would love to see our program get to the point where dax's standards are absolutely in line with what our program should be achieving at a bare minimum. But I think we'd need a Final Four appearance or a Big 12 title before dax's standards can become the minimum expectation. Right now, we're an upper level Big 12 basketball program that should regularly be in the NCAA tournament, and the potential is there to become a contender, but right now we still have some major barriers in the way, both immediate and long term (practice facility isn't finished, overbearing AD, "can't recruit to Manhattan" meme). We have to overcome those before we can put some distance between us and WVU/OSU and permanently leave ISU and OU in the rear view mirror.
UT and especially KU far and away have a better infrastructure than us to get the best players and either program would need a catastrophic blow to get knocked off of the mountain. The practice facility will put us at the upper end of the Big 12 spectrum in basketball facilities, and if the Bram locker rooms and such can get renovated, then we'll be at the elite level in basketball facilities compared to the rest of the country. The bball practice facility will put us on par with OSU and WVU in terms of program infrastructure, they are/will be our peers for program strength and recruiting. OSU smashed their "can't recruit to Stillwater" meme years ago thanks to T. Boone, and we can do the same IF we finally start dumping some money into the program. We also have an advantage over OSU and WVU: an in-town airport that's reasonably easy to fly into.
If we get the right coach (i.e. not oscar or Frank) who can recruit their ass off and an athletic director who won't micromanage said coach to death, the potential is in place to start competing regularly with KU and Texas for the occasional conference title. If Texas hires someone terrible and/or KU loses Bill Self to the Spurs, the potential is in place for KSU to displace them in the elite tier of Big 12 basketball. But all of these things have to occur in a perfect storm of momentum for us, and how likely is that to happen within the next 5 years? Currie and oscar would have to leave, and we'd have to hire an outstanding AD and a competent basketball coach to turn around what might be a moribund program by 2015. The AD position is more important right now, because we won't get a good coach until we get an AD who is willing to open the purse strings and give them the support they need to make gains in the Big 12 arms race (as well as look the other way when necessary). Until we get to that point, the best we can reasonably hope to do is keep ISU and OU at bay, wait for the axe to drop on Baylor, and try and jostle with WVU and OSU for the 3-5 spots in most years, the occasional stab at a top 2 finish or rebuilding year aside.
Honestly, most of the other Big 12 programs probably see us at 6th or even 7th on the program totem pole now that we've hired a proven loser (this year's likely 2nd-4th place finish aside), so I don't think my expectations are that weak. Baylor, ISU, and OU have the potential to pass us while oscar is here (some would argue Baylor already has and will as long as Drew doesn't have a show cause), although Baylor's and ISU's ability to knock us out of the top half of the conference isn't as sustainable as OU's is over an extended period of time.
For what it's worth, I don't think dax's expectations are flagrantly homer-esque on the Big 12 side of things nor massively different from my expectations there, they're just a bit stronger than what I could agree with. Where I mainly disagree with him is his NCAA expectations; there may be years when we're lower than a 9th seed if we finish 5th in the Big 12, and we're not a top 16 program nationally so I don't expect to send up in the Sweet Sixteen every 2 out of 4 appearances. Top 32, sure, but we have a ways to go before making that next step.
tl;dr: Currie and oscar have to go and be replaced by better personnel before dax's minimum expectations can really become reality for KSU. Until then, we're in the upper half of the Big 12 but not a Top 3 mainstay.
