I don't entirely disagree with the sentiment that the NCAA is looking out for more powerful programs but that is only one part of the picture. The transfers are not always from smaller to bigger schools. As often as not it is about kids who are getting recruited over or just not getting the PT they want or some other fit issue. So if I'm a major prospect and I could have been the star player on just about any school and I commit to a major program like say AZ. Then AZ decides to open up their purse strings and is shelling out big bucks to load up their team, why do I have to sit out a year because I was essentially lied to to get me to come to AZ and now I need a better opportunity (hypothetically)?
Charles Finley, the outrageous owner of the Oakland A's, proposed a solution to free agency that was driving salaries beyond the reach of small market teams and destroying competituve balance: makes everyone free agents each year by having all players have 1 year contracts.
If players can move freely by transferring, why sjould schools commit to 4 year scholarships? Grant them on a 1 year basis, and schools will be free to determine their roster each season.
All in all the system stinks now and will continue to stink. Thete is something wrong when a coach can make $9 million a year, as coach k reportedly does, where tv revenue and related revenue is in the billions, but the players don't make a dime except for free tuition and board.