I can't help but think some of this has to do with the NCAA rule limiting scholarships to 13. In the modern game with the increase in losing players to injury, transfers, not to mention the difficulty of evaluating recruits, this places a lot of pressure on coaches to try and create openings for scholarship players when there are no more than 13. I feel It is similar to the regulations to implement affirmative action, a well-meaning idea to create openings where there were few, but which injured those who were passed over in favor of the rule. It created a no-win situation for administrators, who often had to make decisions which they might have felt were unethical or maybe even immoral, and which often caused resentment by the injured party.
I think back once again to the 1960s. There were no limits on scholarships back then, and Cal in 1959-60 had about 45 players on scholarship, 17 on the frosh, about 17 on the varsity and maybe 10 on the JV's. Only 5 of the members of that frosh team went on in later years to play on the Cal Varsity. What happened in the cases of those frosh players who did not move on? I personally know 3 who left the team for academic reasons, and they all felt the pressure of trying to stay in school. I also don't know if the scholarship was for one year or four, but I assume one condition for a player to keep the scholarship would be to make the Varsity or JV team the following season, when varsity tryouts were held. Another condition for those scholarships was that Coach Newell required each player to work 20 hours a week at a campus job. Stop working, and you lose the scholarship. In any case, if you had problem player, or a player who was not good enough to continue on scholarship, he would just be told at the end of varsity tryouts that he had not made the team, and that was that. It really eliminated the ethical problems coaches face today with a having to let a player go, so they can get access to their scholarship and bring in a fresh player. I don't think we will ever be going back to a system where freshmen aren't allowed to play varsity, nor will we go back to an era of unlimited scholarships, but raising the limit on scholarships to 16 or 17 per team might alleviate some of the pressure on coaches to fill or create vacancies to fill on a roster. Whether there is enough money available for the additional scholarships, or whether there are enough quality recruits to fill the spots would both be big questions.