I'm a moderately moderate moderate (and moderately proud of it), so it's no surprise that I see both sides of this issue.
On the one hand, it is patently unfair that college athletes can't get a job and earn extra spending money. When I was a student at TCU one of my football player friends was broke all the time. I can remember several of us pooling a few bucks each so he could take his girlfriend to dinner and a movie on Friday night. Meanwhile, I paid my way through college by working as a DJ on the radio six days a week. Between school and the radio I virtually worked all the time, but so did my football buddy. The difference was I had some spending money in my pocket, so I understand the sentiment behind allowing athletes to profit off their names, images and likenesses.
On the other hand, it doesn't take a fertile imagination to see how all of this could go haywire really fast! Many of the possibilities have already been mentioned in this thread, so I won't repeat them, but it's easy to envision rich alums offering lucrative endorsement deals to highly-rated recruits as an incentive to sign with their alma maters. Needless to say, this could lead to bidding wars of mammoth proportions, and I can't see how that's good for college sports. Certainly the devil is in the details, and several posters have pointed out that we don't have all of those details yet, so much of this is pure conjecture on our part, but there are definitely two sides to this issue.
Go Frogs!