Clubs definitely now recruit from further afield, but a lot of that is to do with more people moving around in general (not just in football), better scouting (and video etc), more freedom of movement cross-border and the like. I did read in Tor! that in Germany until relatively late in the day it was considered a huge betrayal to leave your hometown team, and they were also very late to go professional, so maybe there is a correlation here.
You're right about the modern player, it's player power now in most cases, which is a double-edged sword.* It means they're harder to exploit but it also makes it more difficult for employers.
*all fucking swords are double-edged, I hate this expression and I don't know why I use it.