I love how we cherry pick about what NIL was and was not intended for. NIL, at its core, was to remove any barriers between a person who merits value, and the people who would like to reward that value. If utee wants to give me money, for any reason whatsoever, it’s not up to any government or governing body to stand in the way of free commerce. I don’t see why there needs to be some kind of endorsement or exchange.
I don't disagree with you in principle or intent, but I do disagree in matters of fact.
NIL is by definition money paid to a recipient in exchange for the use of their name, image, and likeness, limited or excepted by whatever the contract specifies. There is literally no other
legitimate reason for this transaction to occur, other than an endorsement.
Nobody wants to pay utee94 for his name, image, or likeness, to endorse their product-- because nobody's ever heard of utee94 Likewise nobody wants to pay the 3rd string left guard at the University of Texas, for his name, image, or likeness, to endorse their product-- because nobody's ever heard of that guy either.
And yet the 3rd string left guard at the University of Texas is making a minimum of $50,000 per year in NIL money. That is because there is an NIL collective at the University of Texas that guarantees every single offensive lineman at the University of Texas will make a minimum of $50,000 per year in exchange for limited use of their name, image, and likeness rights, regardless of whether or not those rights are actually worth that much on the open market-- which of course they are not.
This is a perversion of the intent of NIL, but as you point out, there's no real way to separate them because there's no realistic way to define the market value of these athletes. There's no real way to discern what's a legitimate NIL deal, and what's just an inducement from a school. So we get both, and there's really no legal way to avoid that.