I don’t know; it sounds like it’s better for a team that’s already on top that would have been extremely successful but realizes it now has a hole it needs to patch (or can improve with a better player) before the season starts.
In the long run, the schools it probably hurts are the smaller brand, less successful (I’m going to call them “secondary level”) schools in the major conferences. Breaking through that ceiling (or even just raising that ceiling for the program) becomes much harder when the best players / actual NFL prospects that they managed to recruit eventually bolt to the teams that have repeatedly had success or are much more recognizable as a means to build their NFL resume, or alternatively to compete for championships.