You do you ... everybody get's to set their own expectations. I would say it's good to have them as high as you can reasonably expect them to be.
This is true of every MWC school...does anybody have an institutional advantage in the MWC? I don't think so....does BSU still get extra media money? Maybe they should be "expected" to dominate. There is nothing intrinsically "special" about Wyoming football that you can point to that sets us up to "dominate" the conference.
The part about never having a hope to win the conference is true of most the MWC...the part about not being able to sniff the playoffs is also more true for G5 teams as every year goes by. Even if they expand to 12, without a token spot going to G5 automatically. For historical context, since 2014 (beginning of the CFP era), 2 schools from the G5 would have been invited to the play off if 12 teams were invited. UCF in '17 and '18 and Cincinatti in '20 and '21. Both of those teams are not G5 starting next year. The best odds (meager as they are) of a G5 team cracking the playoffs are right now ... but as time goes by it is only getting smaller.
I don't think winning the MWC is an unrealistic goal...as has been pointed out...the MWC is terrible. Really the only years that winning our conference felt completely unrealistic was during the TCU/UTAH MWC heyday.
As far as beating App State...sure...If we can beat AFA (something CB does with surprising regularity) they we can probably beat App State, but don't bet the bank on it. Texas Tech? not so much. The ability of $$ programs to stockpile talent is increasing and Tech is a $$ program. Going forward, Wyoming is at an increasing disadvantage against P5 teams...again...this is something we have in common with the rest of the MWC. Does this mean we don't belong in the FBS? Well...I would say the the FBS includes some powerhouses like Ohio State but also has UNLV...I think we fit in there somewhere.