Iowa State isn't exactly a small college, it's a division 1 school in a power conference. They may not be a powerhouse program but it isn't like he was playing at a FCS school. Lot's of college athletes no matter where they play get by on pure athletic ability and never pan out in the NFL for a variety of reasons. Butler is at a crossroads where either he uses this as motivation to change or he disappears from the football world, it's up to him because physically he is capable of playing in the NFL it is a question of how mentally strong he is and how much he wants it.
It's a college thats small enough to take a punt on a kid that barely played high school football purely because of his athletic profile.