I think this is wrong but as long as there is an incentive to run off underperforming players teams will do it to remain competitive. The new four year scholarships will still allow teams to run off redshirt juniors.
I think the NCAA should lower the yearly 25 player recruiting cap and get rid of the maximum 85 player cap. That would mean there would be no competitive advantage for running off underperforming players. Teams couldn't sign extra players to replace the ones they ran off.
UF says it doesn't allow oversigning but I noticed a few underperforming Gators disappeared from the team this year. Dee Finley was a five star recruit who didn't gain weight and never contributed much. He was apparently on the punt coverage team and was blamed for not containing the LSU punter on that LSU fake punt touchdown that got called back for celebration. I remember Muschamp making a comment that we don't want players like that in our program. I never saw Finley again. If my impression is accurate I think UF is essentially doing the same thing SEC West teams are criticized for doing.
I think athletic scholarships should be like academic scholarships. You keep them as long as you meet minimum standards. A player who shows up for practice, team meetings, etc. should keep their athletic scholarship even if they turn out not to be gifted athletes.