Recently, a new class of so-called emph{hierarchical thresholding algorithms} was introduced to optimally exploit the sparsity structure in joint user activity and channel detection problems. In this paper, we take a closer look at the user detection performance of such algorithms under noise and relate its performance to the classical block correlation detector with orthogonal signatures. More specifically, we derive a lower bound for the diversity order which, under suitable choice of the signatures, equals that of the block correlation detector. Surprisingly, in specific parameter settings non-orthogonal pilots, i.e. pilots where (cyclically) shift