I don’t wholly disagree with what you are arguing, but it seems like you are making the players the culprits, when in fact it was the NC2A (intentional spelling for my man Tark the Shark) AND coaches that fought every effort at a middle ground. This in turn forced the issue into the court system, and courts are not in the business of compromise. Courts rule on legality, and not allowing ANY person to profit from his/her NIL is against the law and anti free market capitalism. That law is not rooted in college sports, it is rooted in economic principles.
In the 80’s and 90’s when shoe contracts were popping up for colleges, Sonny Vaccaro recommended to the coaches that they share a portion of the shoe revenue with the players. The coaches and schools refused. They wanted to keep all the money. They sold products using the players image and likeness, everything short of the name, and profited in the millions. The schools signed media deals that resulted in profits in the billions and still withheld any form of payment from the players.
People like to yell, “well they get a free education”. I attended Univ of Michigan at the same time as the Fab Five. As an in-state student at a public university, I paid about $10,000 for 30 credit hours per year. Do you really think the Fab Five should only have been offered free college tuition or $10,000 considering the amount of money they generated for U of Michigan?
Your arguments are not wrong in theory, but I would submit they are wrong in practical application. And as someone who has disliked the NC2A going back to how they treated Tark in the 80’s, all because he felt college players were being exploited, I would love to see the absolute destruction of a corrupt institution.