85, you seem to think the free market is a place where individuals can operate in a vacuum. Most markets are essentially made up of systems and subsets of systems that consist of groups of individuals working within agreed upon rules, offering an exchange of goods for services.
The XFL, the CFL, and whatever lame predecessors I can't remember (because they were forgettable), have tested the market and failed. Those ventures didn't die because the NFL ran them out of town, they fizzled because of lack of interest. There is a great deal of interest in college football, and nobody forces athletes to go that route. I'm not dead set against some kind of change, but I think your take is a little idealistic and naïve - no offense.
Not saying that the present arrangement shouldn't or couldn't change, but I'm not sure that the vast majority of college athletes are so unhappy or exploited. Also, if you can reward those who excel, you can punish those who don't meet expectations, which might turn NCAA football into NFL's minor leagues, and much more of a business. I don't think I want to see that.