Blueshirt--new way to recruit

From the article:

Look at it like this: it’s like a greyshirt, but one where the recruit can actually play during his initial semester. A player is part of the 2010 recruiting cycle, for example, plays during the 2010 season yet counts towards the 2011 recruiting class. That’s a blueshirt in a nutshell.

As I understand it, it's similar to greyshirting, although the player gets to walk-on and play his first semester. Since he is a walk-on, he does not count toward the scholarship limits that year, even though he actually is on scholarship. As an example:

Say Michigan really wanted John Doe for the class of 2011, but didn't have room for him in the class. He really wanted to come here as well, so he turned down actual scholarship offers from other schools. Signing day passes, but he doesn't sign, because he is planning on Blueshirting. Michigan signs a full class, not counting John Doe, because he is not getting a scholarship. He comes to fall camp as a preferred walk-on, and at the end if camp is given a scholarship in a wink, wink, nudge, nudge kind of way, as that's the agreement all along. He plays in the fall of 2011, but since he started the year as a walk-on, his scholarship doesn't count to the 25-man limit (I think it still counts toward the 85). Still, I think he counts as a 2012 signee, since his scholarship started in the year prior to signing day 2012.

I'm not sure that's all correct, but it's at least how I understand it.