I'm still leery that the boosters of the factory schools aren't driving their NIL programs with a wink from the school - in other words CHEATING! Yeah, the boosters are at a supposed arms length from the institution, but are they really? There used to be rules that limited boosters from paying players. This is no longer the case. A supporter of the program can now pay a player if he has no connection to the school other than being a supporter of the football program. All the player needs to do is support a product that the booster owns, sells, or supports. Any room for cheating here? Just very suspect in how this is being administrated at various places. Do you think Alabama and Texas NIL programs are run the same way NU has chosen to run theirs?
If you let "the free market work its wonders" without any oversight by a college sports governing body, I think you'll eventually end up with players being employees. They will receive compensation from the school, AND, if they are stars, NIL. Again, if you let the free market work its wonders, where do you think a school like NU will end up when they stick to principles like, "You have a scholarship for up to 5 years, no matter if you're injured, or if you don't perform".
If you are OK with the players getting direct compensation from the school, {which is NOT the current situation using (cough) NIL}, then you can't fault the school for cutting loose non performers after two years in the program. Which is exactly what is happening right now at other places. You may think the current situation is just fine. I don't. Too much room for gaming the system, and NOBODY has come up with a good, and fair, solution.