Put it this way, the higher up you are in the pecking order, the more you will be able to benefit from this rule because the more highly sought after players will be available to you in greater numbers. It's not that Ohio can't benefit in some cases, as per your example, but not to the extent of Alabama, Clemson and O$U..
Yeah man, that's how markets work. Of course the Alabama and the Clemsons will be able to gain access to better players as a result. Is that bad? In some ways, sure. But it sort of depends on one's perspective. If you're a very good Small Forward at Toledo and NBA scouts are uncertain about how your game will translate against more athletic wings, having the ability to transfer to Kentucky or Duke is good for you. And it's good for your professional aspirations, too. That's kind of the point of college, right? Why place limitations? Because of competitive balance? Is that really a good enough reason?
One thing that strikes me as very wrong about this proposed rule is that a school that takes a chance on a prospect that no one else has great interest in, but the coach sees something that others don't and thinks the kid has potential, can get screwed if the kid becomes a star. Specifically, a coach with a keen eye for undeveloped talent, who is good at "coaching up" a prospect, can spend hours and hours of his time teaching and developing the young player, who then before his junior year transfers to some other more glamorous school.
This happens in all walks of life. But for some reason, it's only amateur athletics where everybody falls all over themselves to try and legislate away this possibility and assume it reflects some moral failing.
Some Major League Baseball teams are much better at drafting and developing talent than others; that talent leaves in free agency a lot of the time. Some companies are renowned for junior executive development, or for training sales teams, and many professionals who are 'coached up' by one company end up providing the bulk of their value to another.
But for some reason when it comes to amateur athletics, this is always cast as some moral failing. A kid transferring makes him "ungrateful," as you put it. Would we ever say the same thing about a physics student who had a great relationship with a professor at OU who brought out the best in him/her as a freshman, only to transfer to MIT? Of course not.
People should be free to do what they think best for themselves, even if it means we're slightly less entertained by basketball sometimes.