"Bleeding Heart Judges" ruling that student athletes shouldn't be held to a different mobility standard than other students (or even students on non-athletic scholarships) sounds pretty rational to me. Restricting them just because they throw a ball around, in addition to their studies, seems like the the illogical side of the debate, but what do I know?
Regarding coaches, there's absolutely nothing restricting their eligibility when they decide to change jobs. They might have a buyout fee, but that's significantly different than restricted eligibility. Under the old transfer rules, a student could complete the terms of their yearly scholarship and still not be eligible to play right away at another school. That's a stark difference in the rules.
Regarding contracts, we'll have to see. If a 5 star player says, "I'll come to your school, but I'm not signing anything that locks me here for me more than a year" I suspect a whole bunch of schools will have no problem agreeing to that. Especially the blue bloods, who figure that being a contender will keep players around, and if they do leave, they know that they can reload with other talent.
Some players may agree to longer term contracts. Others might not. So long as they're individually negotiated as opposed to being one size fits all for every player in the league, it's fine. As soon as they start saying "All player scholarship contracts lock you in for 2 years" that's when the courts will get involved. Short of having a union collectively bargain that arrangement, it's going to be vulnerable to lawsuits.