It seems that Private Universities (with expensive tuition) and Mid-Majors, who don't stockpile talent as much, would be at further disadvantage. Also, a FB only approach will redirect greater budget amounts to one sport, despite it being the primary revenue generator.
Article from -- St. Paul Pioneer Press
"The idea of granting a fifth year of eligibility to college football players is not new, but the American Football Coaches Association is getting ready for a major push as coaches give up on adding scholarships and look for other ways to, in the words of AFCA executive director Grant Teaff, "maximize the ones we have."
The idea, at this stage, would be changing Division I football eligibility to a five-to-play-five format, erasing redshirt seasons altogether. Teaff said the proposal would be for football only."