The one year sit out does not restrict players' movement or earning capacity any more than academic requirements or limiting kids to 4 years.
Leave NIL as is, and hell, completely remove all restrictions. Make it full pay to play. Who cares. But get rid of the transfer portal. Get rid of waivers. That would solve nearly all of the problems. You want to transfer, ok. Nobody is stopping you. You just have to sit out a year. I'd even be fine with counting that as a redshirt year, even if you've already redshirted. The transfer portal is what has completely killed my reason to care. I enjoy watching good football. But I don't care how MUS does. I don't know how any fan care how "their" school does anymore. You are either a feeder school, or a mercenary school. I remember a decade ago wondering why people were rooting for a worse version of the NFL. But this is now just a worse version of a less regulated NFL. MSU might go 9-3. They might go 3-9. Who cares? It's all the same amount of irrelevant. If we go 9-3, we'll lose our best players to a handful of schools; when we go 3-9, we'll poach some players from some other schools. MSU will have more roster movement than the Lions, and even the worst Lions team is better football than the best college team, so what are we rooting for. It's like being all in on a AAA baseball team.
