1. This has already happened:
http://www.tigerboard.com/boards/view.php?message=16118498
They will bounce back because they won't stop cheating, they will simply adapt and change to a different strategy. This will be a a temporary setback and then business will resume as normal.
2. They have also been through something like Self leaving right as they are about to be hammered. Its kind of lost in history now, but when Larry Brown left and ku was getting hit with a postseason ban they couldn't get anyone to take that job. They got turned down by everyone they tried to hire. They even offered the job to the Southwest Missouri State coach and he decided he would rather stay at SMS than coach ku. So they hired the 3rd assistant at the time from UNC. Not the top guy, not the guy who was a proven recruiter, not the guy who had prior head coaching experience...the 3rd assistant from UNC in Roy Williams.
Here is the thing....Self is almost certainly the dirtiest coach in college basketball right now. But is he dirtier than Roy Williams? I don't know. Is he dirtier than Larry Brown? I don't know. Is he dirtier than Phog Allen? I don't know. Those are all some of the dirtiest coaches in the history of the sport. Whomever ku hires to replace Self would in short order become the dirtiest coach in college basketball. Because the problem isn't these individuals. There is an embedded culture there of cheating, and it will live on. Roy Williams simply brought his fake class scheme to UNC that he developed at ku. Larry Brown continues to get busted everywhere he goes by deploying the tactics he used at ku. Phog Allen built a 'tradition' at ku by becoming one of the first coaches to start paying players from all around the nation to play amateur basketball.
If ku didn't cheat like that, they would be Tulsa. That is the only thing that differentiate the programs, other than the culture that exists there which endorses cheating so they don't become Tulsa.