The NCAA and/or the larger leagues need to take action--well-advised, smart, forward-thinking action. Hire nationwide advisors on antitrust and labor laws. Conduct a serious analysis of the available options for governing things going forward. Understand why the old system is no longer viable but also analyze how things can be governed in the future to maintain a semblance of continuity and organization, all while allowing payment of players, NIL, and some player mobility that isn't the wild west. It will be difficult but, if done smartly, it will work and be defensible in the courts.
Instead, though, the NCAA and college administrators are sitting on their hands, stunned or uninterested, and have handed the governance of college sports over to emergency motions in courthouses that, chunk by chunk, implement sweeping governance changes to the industry with no vision regarding what the industry will or should become. It's unsustainable.
The fault lies with the NCAA, conferences and schools that do next to nothing as outside forces insert themselves to govern things in a way that, if not stopped, could end everything.