It strikes me as really a professional / amateur / eligibility issue -- which puts the NCAA in a real bind.
If players who get monetary compensation for playing college ball are professionals, why are these teams not vacating every game? That's what happens when a player who has received money from a booster actually participates in on-field competition (unless, of course, you're Auburn or North Carolina, but that's another rant).
So why are the California teams threatened only with not being allowed to win championships? Why not an official 0-0 record?
My take is that they're trying to split the baby -- as in, "OK, we won't make your whole season meaningless -- which our rules would ordinarily require us to do. But we will ban you from winning the big prize."
If they allow players who get monetary compensation to actually play, they're opening up the gates to outright and open buying of recruits, which I think only the have-nots in big media markets want. I mean, instantaneously, teams that just happen to be in big markets become real contenders because of the endorsement opportunities. Rutgers, Temple, Georgetown, DePaul, and any Podunk school within 100 miles of Los Angeles just got a big seat at the table for every 5-star out there.
You also create chaos in the locker room. Even at Alabama, only a few players would command really big money. But you think parents and entourages are clamoring for playing time now? Wait until they perceive real money on the line. Expect lawsuits over lack of playing time and/or disciplinary benchings / suspensions.
One of my pet peeves is people throwing rocks at an idea without offering an alternative solution. So here's my suggestion: Pay players for their football time like work-study students. They already get room, incredible food, tuition, academic help, books, everything. At 20 hours a week on football, plus extra for the time on gameday, that would be $600 - $1,000 a month pure spending money (everything else is already handled), and everybody would get it, not just the stars.