Since so many others have given their viewpoint, I will also.
The current NIL/portal situation is not sustainable. We can't throw out some of it for legal reasons, and we would not even want to throw out all of it. But the way it stands it has simply become a greed machine from all directions, and it is probably already pulling money from other areas...in many cases, more valid areas...at every school with upper level football and basketball programs. Some of that is presently being hidden and some of it is visible. At private schools it is going to be well hidden. At public schools the transparency will vary.
Just for myself, I decided to bump my contribution significantly for the next few years...by a factor of 4. I expect to retire in 3 years, so maybe that will be the time limit. By then I either need to like what I see or I'm probably done. I'm all for giving WSU my help, such as it is, for a couple of years to see how it will all shake out. Because I don't think the current scenario is sustainable, I expect that some combination of the NCAA and the federal government will do something. Were it me running the NCAA, I'd first focus on the things that I clearly can legally do....the 70 scholarship limit that Biggs noted is one. The government could help in many ways, and the football "have not" state reps and senators would probably be happy to do so. The "have" states may be more willing to do something than you would expect, since the bigger the NIL situation gets, the less control the schools have of what is happening in their own programs. Things the government might do include putting the schools on the hook for NIL taxes not paid, which would also require IRS transparency for all NIL payments. Any NIL collective who thought they could circumvent the IRS deserves what they get, and the legal and financial exposure the schools would get from this is likely to mean they will not decide to simply look the other way. The government could also make D1 scholarships a taxable event, or threaten to do so. There are actually quite a few things that could be done if there was a will to do so, and the non-sustainable situation we see now may be enough to force some action. Time will tell.
For the next couple of years I'll stay with my new contribution level. Like so many people, I'll have to like where this goes in order to continue it, and I don't like what I see right now. And in my limited mind it doesn't matter a ton whether the money goes to an NIL collective or the athletic department; this is hitting them both. As things stand now, the added bump should probably go in the NIL direction, but you could make a reasonable case either way.
As for CJD's contract extension, it is what you do with any high profile employee who is doing a good job. I've been around long enough to have seen football, basketball and baseball coaches who did NOT do a good job. He is not in that group. What is his ultimate ceiling? I don't know. But if he were working for me, I'd keep him around to see what he could do with the advantages of some stability and tenure. The fact that the college football world is in an unprecedented turmoil right now gives him an even better opportunity to show what he can do. The flexible minds are the ones that will have success right now, and from my porthole view, the ship is doing well under the circumstances. We need improvement, but the last round of coaching changes appear to me to have ended up as a net positive. Now I'm waiting for spring ball, as well as possibly one or two more kids to join the group.