towards your first point, the NCAA is a victim of its own structure, the matter of increased scholarships or a stipend has been voted on multiple times I believe, but the problem is the smaller schools not in the big 5 are keeping the legislation from passing because they outnumber the big 5. That is why the talk of this new Division for the Big 5 is coming up.
Towards the second, this is up to the kids to determine if they really want to play for a school that doesn't. Its just like getting a job the benefits I get at one place could easily be better than what I would get at another so it is up to me (or the player) to choose. The player has options, how is the NCAAs fault they choose to go somewhere where they aren't covered, yes this is pertaining to the unions not the courts.
third paragraph, buyer beware, the kids (or their legal guardians which have to sign the NLI/LOIs) need to do their homework on schools. It is readily accessible information on what all they can get. look up the NCAA bi-laws. How does it fall on the NCAA that the kids don't understand what they are getting into when they have access to the information?
Towards the NLIs having value and owning them, I own plenty of stuff that has no value what so ever, doesn't mean i can't own it. These kids no they are getting paid, in the recruiting tweets on here (VN) i have seen kids brag about getting on the front of the EA NCAA video game covers, they want to be there, knowing they are getting paid (how the system works when the wanted to get on it) easy to think that if they want to get on the cover they are ok with being in the game. While every player may not feel the same way I am willing to bet the vast majority do want to be in the game knowing they are getting paid for it. I see the usage of the names/stats/grades/whatever for the games as a citation, the game is giving credit to the source. This happens all the time in papers/books/movies/any thing published. and not all the time (especially in written but in other areas too) is the source getting paid or even have knowledge they are being quoted/used. as long as credit is given (using the players name/number and even likeness) I dont see the problem.
From what I have been following the NLI has never been established, there are some outliers which have sold rights but I am pretty sure I have heard that 50% it isn't even part of the conversation when working this stuff out for other non college athletics ( i could be completely wrong I dont work in the field). so why can the players set the value on something that doesn't have a set price/ or even completely accepted that is has a 'value' again this is playing with word definitions that in legalesee can be completely spun any which way, and both sides are spinning it to their benefit.
towards the last part, because of what people outside the situation (fans) do that affects how it should be run inside. If i saw AJ wearing a purple/red/whatever non-orange color UT gear because it got screwed up in the wash or it was used for one particular instance, and decide that I would wear that color of UT gear does that mean UT has to recognize that color as official because I (a fan) knew AJ was wearing it? Again this whole problem of endorsing is a non problem for me (maybe in legalesee land somewhere it is) but the company makes money when the outsider makes a decision. What if I a TN fan wanted to buy addidas gear just because its better than Nike/russell/who(m) ever. Just because I buy something doesn't mean the advertising worked and that it was the ONLY reason I got it. That might be the case for some people that the only reason they bought it was the team wears Addidas but that is again a choice by the fan. Again the players know what they are getting into they know they will be wearing addidas or Nike which has been something the recruits are eating up. Yet they know they aren't getting paid by Nike to wear the uniform (unless they go to Oregon
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) And I believe the company just manufactures a blank jersey and the school adds the names to the back, the company isn't responsible for who wears #45 or #2 or #77, a lot of the time the school isn't either the players choose the number for whatever reason. Its not like the company (Addidas) sends out more #45s to the team to wear, the school orders the number based on need. The school and the company have agreements, the schools order the jerseys and the names are added later (at least at TN & ND). There is no crowd manipulation going on. The school doesn't force a player to wear #16 at UT even though that is the largest seller to push sales. and the schools don't change numbers around in a "oh we aren't selling enough #3 jerseys, AJ you are now #3 so we can sell the jersey" situation.