The problem with us offering local kids is 2 pronged.
1. The kids probably either tell UW how much they want to be a Dawg, and therefore UW then thinks they can outbid anyone late including Penn St, LSU, etc. This futher feeds into their dogma of "We only offer OKGs" or "We have to be ready for the kids commitment when we offer". If a kid's talented, who cares?? You should want kids that are super motivated to play for you.
2. I think they probably question the commitability of the other school's offers unless it's Oregon or USC, which circles then back to point #1.
What they fail to realize is that as kids go from being sophomores to seniors in high school, the "staying close to home" card wears down, and the spiteful feelings toward UW increase.