The universities certainly make a lot of money off the athletes, but the reverse is true too. The top notch athletes seeking to make it to the next level don't cross their fingers and attend a local college. Most of them seek out what they feel is the best university that will get them playing time, exposure, etc.
At the same time, coach Cal outlined a few things in his book I agree with:
1. The schools should pay premiums for athletes' catastrophic insurance
2. Athletes should be able to get a small loan against future earnings. Most will anyway, much like how Lebron got a tricked out Hummer in high school.
3. They should get a portion of the revenue they produce through jersey sales, etc. (not endorsements)