I think you have several good points. The rule is in place to prevent poaching of high profile talent. Most institutions and athletic departments will be honorable, but as we find out every year, certain programs either through the coaches or boosters cheat their way to glory.
SMU was so bad in the 80s that they got their program terminated for a number of years. If certain kids could move without restriction on a coaching change, then every year we would get a reentry draft for the next season. It would foster even more cheating than we have now.
I don't like it that college athletics allow the schools and the coaches to advance themselves for money and keep the athletes tethered to the school in a sort of indentured servitude, but at some point we have to allow the kids to be amateurs and hope that a free education will be enough. With stars like Lebron James, Moses Malone (for all you old-timers), and others, basketball players already bypass the college ranks to go straight for the money. The NFL uses the collegiate ranks as an unsponsored minor league, so that is why the NFL has all these ridiculous rules about early entry into the draft. They don't want to damage their minor league, so the indentured servitude continues.
I don't know the solution, but I agree that in certain situations there ought to be consideration given for the circumstances a kid finds himself in. Mallett ought to be one who is considered. There is a whole lot of money tied into the current setup, so I don't expect any changes anytime soon.
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