From Kevin's article and a lot of the comments in here, it's clear there is a very big misunderstanding of what the NCAA does, how it works and so forth. The NCAA is a rules organization for the member institutions. It's not some big corporation making billions in profit, it is a relatively small organization (employing 500 or so), the money it collects essentially gets funelled back to the member institutions in various forms.
I'm sure the NCAA would like to add additional eligibility for students that miss out on a year and so forth, but at the end of the day it has to do what member schools want it to do. My guess is that the NCAA floated some ideas of how they could add eligibility for students (which would have to include raising the number of schollie's for each sport), and many of the schools said "whoah there, that's going to cause all sorts of problems, both logistically and financially".
This isn't an issue for the NCAA to deal with in a vacuum, it's not their money and it's not their decision, it's going to be the money and the decision of the member schools. For a school like OSU, $1 mil is chump change, it's barely the pay for an assistant football coach. For other schools (and remember, there are hundreds), a $1 mil budget hit is a major thing not to be taken lightly.
Feel free to burn the NCAA at the stake -- and that is often warranted! -- but this just isn't a "mwahahahaha, we'll just keep all the billions and screw the poor exploited athletes" thing like some would like to portray. It's going to be a real problem for a lot of schools, and the NCAA can't make rules that most of it's member institutions don't want.