Here's the general flaw in this proposal--it presumes Division I membership is based on scholarships, which it's not. Division I membership is based on the number of sports a school sponsors. It is entirely possible to field teams without scholarships (or with very few scholarships) and be valid members of Division I.

Defining scholarships just by numbers is unfair to schools where the cost of education is significantly higher. Which is more of a commitment-60 scholarships at $4,000 each or 15 scholarships at $45,000? Or does the latter school simply give 63 students $4,000 each as a "scholarship" for I-AA purposes but require them to foot the bill for the other $41,000?

It is also unrealistic to assume teams would drop back down to other levels to play football. The lower divisions didn't want Dayton et al. in their midst 15 years ago, and most of these programs have grown in the years since, further distancing themselves from D-III.