I still don't see it, and that last bit is a strawman. Contracts, especially standardized contracts would be a win-win IMO.
The issue that I think gets in the way of longer term deals is the variability for the recruit. There are maybe a handful of sure-fire players, and those guys are going to the next level anyway. The rest are guys that can be in any one of three camps, which are on a very broad spectrum. Guys who do well relative to expectations, guys who do about as expected, and guys who do worse. The parties would need to take the opposing side of the risk, and that strategy seems broken to me. Imagine a team that signed a bunch of 3 and 4 year deals that didn't go well and had dead weight for their collective for a couple years before they could even attempt to rebuild. Seems like that could crater the program in a spiral. Imagine Groce signing his kids back in the day. Year to year just makes more sense from an economic standpoint.
Not saying I'm right, just that I'm seeing more issues than solutions.