Something like this is a double edged sword
The big schools will trip over each other to snatch up any breakout small/mid player which would hurt the smaller programs.
Meanwhile those 4 or 5 star blue chip prospects that sign with a major program that are red shirted their freshman year and the following year are competing for second or third string might let their eye wander to a lesser program where they could compete for a starting job
In either case, transfers should be a one time opportunity