I believe Kiffin and Ole Miss almost got sued or are being sued because they basically tried to get rid of a student by assigning him to a different position. They tried to run him off, which is what coaches have done for years.
Scholarships are yearly. There ARE expectations and you CAN be dismissed and players are for not meeting team expectations and following team rules. Though it seldom happens because coaches tend, as above, to make it clear the player needs to leave, scholarships can simply not be renewed. That is a worse case scenario because it looks bad in recruiting if it gets out.
When the athletes become employees, they'll unionize immediately. They may unionize even before they are declared employees and they'll have a grievance/discipline appeal process like you probably have at work now. They'll engage in collective bargaining like pros for minimum salaries and such.
The worst of this is what could happen to the other sports AND the end of recruiting. Pro sports need a draft and league salary caps and have them to keep parity in the league. Without it, pro college sports will be dominated by large markets. I always liked the recruiting surprises.
Non revenue sports are in trouble if schools have to pay all the athletes. There's no way around that.
And why would schools agree to players unionizing? How would a state school react to that? Most private U.S. businesses/industries violently oppose efforts by their employees to unionize--see recent battles at Starbucks and Amazon. Are schools going to keep paying to educate their employees if they're obligated to pay them as employees? I wouldn't. You're adding another huge expenditure on top of the huge expenditure of annual cash payments.