I've been told the NCAA tends to look more at what happened at the school the player transferred from, not necessarily any hardship case. In other words if the school releases the player and writes a letter of recommendation for said player, the NCAA usually grants it. This is what has been happening recently. It happened with Mack's transfer to Pittsburgh. It happened with Fields and OSU/GA, And Utah's staff has done the same for Tuttle. While it's certainly the NCAA, I will be pretty surprised if Tuttle isn't ruled eligible immediately.
As for whether it's "bad for college football" I really don't agree with that premise. If a coach can be courted and leave for what is perceived as a better opportunity with no penalty, then I see no reason why players can't do the same thing. I'm sure you could argue that players are getting recruited every off season, but so are coaches, so again what is fair for one, is fair for all.
Now what could end up being a deterrent for a free for all would be the APR score. But in the world of college football, where every off season there are transfers, medical hardships, etc, I just don't think this is all that horrible. And for a school like IU, it could be beneficial to gain a good transfer from a top power 5 school that sat the bench there, but could come in and play quickly without the sit out year.