Every year there are 15ish OAD type players, most of them attending one of 4 or so schools. So lets say 5 of those OAD's go to a nonblueblood program, that leaves 10 kids who WANT to go to UK, Duke, UNC, Kansas. Thats pretty close to what happens every year. Well under your (and your dimwitted presidents) plan, none of those schools could take more than 1 OAD per year.
Taking just one would reduce your effective scholarships to 11. If there were any injuries, a team couldn't even properly practice. Taking 2 OAD's per year would be catastrophic, reducing scholarship players to 9. So, only 4 of those kids could go to the schools of their choice each year and 6 others would be forced to a less prominent program, perhaps further away from home, perhaps without the academic programs they want or the coaches they want. Yes, this punishes players.
Its a very liberal idea really. Its a redistribution of wealth, so to speak. But the punishment doesn't stop with the players, it continues to the schools. Under this genius plan, schools have to plan for potential player losses which they can not control. A school can't force a kid to stay but the plan would punish them if the kid left.
It's rather arrogant of you to assume that academics mean nothing to OAD's. Most of UK's players come back later to attend class. They have lifetime scholarships. The team keeps a solid GPA, they go to class, they progress. By what right does anyone say to them, we're changing the rules to punish schools for taking you because you don't care about academics? The idea is disgusting and whiny and will never come to pass. Pass that along to your whiny president.