Ultimately, if it continues to get more and more lopsided, then the smaller teams should break away. Look at a team like North Dakota State. They are a power of Div 3. They could go FBS level if they wanted and they'd probably do OK but not great. I bet their fans are much happier being Div 3.
There could come the day when teams like Pitt have to make the decision. Do they want to be farm teams for the handful of big money teams paying players, or do they want to form their own league where they can compete? I'm not picking on Pitt but they are the kind of big but not huge program that will have the most to lose. They can't keep up in an arms race.
How will this work out for a team like Notre Dame? Yes, they have money but they fancy themselves as being above the dirty game of recruiting. That's why Kelly left for LSU. He was shackled with recruiting. Boosters would no doubt pay for players, but will ND accept them? I bet they will once they start losing.
What about Stanford? Same boat as ND. They have a pile of cash but will they lower themselves?
Sure, these teams can compete now, but that's only with a few teams that are super teams. Right now most kids would rather start on a mid level team rather than be 3rd string on a big team. Not once they start getting paid. The talent pool will dry up fast. All the 5 and 4 star players will get paid by big teams. Then the 3 star that blows up as a fresh or soph will jump ship too.
The funny thing is this could actually hurt teams like Bama, and Ohio State. They've had the advantage of paying guys for years. Please let's not kid ourselves. Now that playing field will be leveled somewhat and they won't get quite as many top recruits in time.