In regard to paying college players and letting them transfer at will without penalty, I can't believe I'm going to say this, but I think it is a good idea. College basketball long ago ceased to be a college thing. It's just a publicly financed showcase for NBA scouts. If the NCAA abolished the requirement to attend classes and treated basketball players the same way as they do other employees of universities, I'd be OK with that. Pay them. Give them health insurance. Give them paid vacation days and holidays. Pay them overtime for long road trips. It has been a LONG time since these Division 1 college basketball players were actual students. There is a reason why Rusty Clark, a Morehead scholar who had no interest in professional basketball, would sit in his hotel room studying before away games and periodically scream, "I HATE DEAN SMITH!" The current embodiment of student athletes in Division I college basketball is both a joke that should be ended and a mockery of all the students who have to study and pay to stay in school. I have enormous pride when a member of the faculty at any of the colleges I attended wins some prestigious award for his or her work at that college. If basketball players were employees rather than students, I feel certain my admiration for them and their accomplishments would be just as strong and sincere as that I have for distinguished faculty members. The mockery of the notion of "student athletes" in revenue generating sports should be discarded for the fraud that it is. However, if a "student athlete" actually wants a degree, then by all means, the university should bend over backwards to accommodate his or her desires.
ETA1: The only restriction I would place on the ability of student athletes to transfer is that they should not be able to transfer to another school after the season begins and be able to play for that school that same season. Just can't have star players transferring during the week prior to the NCAA Tournament. That would just be a step too far and just turn the Tournament into a multi-round all-star game, with the line-ups reshuffling every week. I don't want to imagine a UNC - Michigan NCAA championship game where Worthy and Jordan transferred to Michigan at half-time.
ETA2: Also, I see absolutely nothing wrong with "student athletes" executing a compensated 6 month non-compete addendum to their contracts prior to the commencement of the season.