This is about the early signing period, have to process kids out to make room for a bigger class in December/February. JaRaymond Hall also gone, didn't even get to make a trip to a Bowl game.
It's what Harbaugh is running there, it is what it is, he's taken what Urban and Saban were already doing and gotten more creative with it. You work within the system to gain an advantage, this(Hall) is just flat out processing, but frankly, his process of bringing kids in early and graduating them in 3 or 3-1/2 years so they can transfer out is just smart and is better than just discarding kids who don't cut it. At least they get an undeclared degree from Michigan and can go try to play elsewhere for a year or even two.
It gives the schools that do it a huge advantage in that they get to process about 25-40 more kids over a 4 year period to try to find the 50 that can play. Another way to run things is to see the value in 5th year bench players that might never see the field, but will be leaders off the field, and will help build and maintain a certain culture. For a school that cares more about recruiting than any in the country, Harbaugh's way of doing things will ensure 25-30 kid classes year after year.
