Interesting read. The way I see it, the problem has to do with incentives. And the incentives go in two directions that foster a cheating atmosphere. First, you have a strong incentive for programs to cheat. Since it's illegal to pay the players anything at all, there is an immediate advantage for those who are willing to circumvent the rules. Second, there is a disincentive for people to expose or "rat out" people who are cheating at other programs, even if they know for certain that it is happening and don't approve, because they will be ostracized. So in addition to providing a huge advantage to those who are willing to break the rules, there is little chance that anyone will get caught because there is no advantage gained from exposing others (a disadvantage, in fact).
I wonder what would happen if the NCAA somehow found a way to incentivize exposing other cheaters. What if (and I realize this is extremely outlandish) the NCAA offered substantial cash bonuses to programs who correctly pointed out cheating where it was occurring. If all the programs acted as watchdogs for each other, maybe cheating would become far too difficult (since all these different illegal activities are happening in very close proximity). Doesn't really make sense, but it seems like one possible approach.