What we are seeing is a natural evolution of two factors: 1) long ago, a lot of educational institutions sold their academic souls to get into the entertainment business...i.e. bigtime sports, and 2) there is no minor league development system in football at all, and only the G-League in basketball as opposed to the farm system in baseball. College hoops has become the de-facto AA League for the NBA, bordering on AAA.
Guys will come and go and already I have SU-grad friends who don't remember Kaleb Joseph or Ron Patterson. It is going to happen, which will...I think...change or diminish the fan experience, but maybe make it better for some but not all players. Non-athletes transfer all the time, perhaps for more academic reasons so on the surface at least, unlimited transfers on the sports side seems fair.
After that, the next evolutionary step, of course, is paying the players and then the unintended consequences of the next evolutionary step (for the players) of "real world" issues like "getting fired." At mid-season, a coach looks at his roster and says "I've got three guys who won't see the court this year. Time to downsize them! Buh-bye!" At the same time, let's say Kansas reduces headcount by a couple at mid-season and Tom Izzo says "gee, I could use another small forward and Kansas juts let one go. Hey kid...call your parents to pick you up. Security will watch you pack up your stuff and escort you to the edge of campus." Some kids may not want to leave a school but will find themselves without a home. Does this already happen on a less-obvious scale? Of course. Guys are moved out all the time if the coach really wants them gone. But I do believe that, eventually, it will be like any other business where lower-performing employees are pruned on a very regular basis.
Sure, some of this is tongue in cheek, but the times they are a' changin' in college sports and it won't be terribly long before 4 year guys, or even 3 year guys, will be a thing of the past. Fans won't develop nostalgia for players any more than fans in an A-league baseball town develop nostalgia for some catcher who played there 8 years ago. For many athletes, it will be an improvement, for some it won't be, and the fans will have to decide for themselves how it impacts their spending on the "product".