Yep, Arkansas has made back to back elite 8s while shooting 33.9% ('21) and 30.7% ('22) from 3. Houston shot 34.1% this year, made the elite, and had the #10 kenpom offense. IU shot 33.9% this year
Three point shooting helps, but is not a prerequisite.
Also, while IU is losing its best shooter in Stewart, its also losing one of its worst shooters in Phin and close to a net neutral effect on the team average. If IU can get X and Kopp to take more shots and maintain near their averages and modest increases in productivity from Race and Bates, IU's 3 point shooting could hold steady with about what it shot this year. If any of those 4 guys makes a big jump, IU could even be pushing 35%, which is about average for an elite 8 team this year.