After reading the forum and diary posts on over recruiting I thought I'd put an idea out there that's been forming in my head:
What if schools were required to guarantee a 4 year scholarship to every player they recruited?
They would still be allowed to cut a player from the team, however that player (now just a student) would still maintain his scholarship, but it wouldn't count against the limit.
That would reduce the douchey aspect of cutting the kid, because he'd still be able to get his education. There would also be a financial incentive (although a small one) to not cut players because you'd still have to pay for them.