The NCAA did the right thing. The transfer exception was only if they wanted to transfer to educational purposes. Masoli was suspended for the year and kicked off the team, then decided to transfer for educational purposes. The NCAA, in the spirit of their rule, was correct in saying that he should not be allowed to play this year. Masoli just looked for a college that offered these classes and used that as an excuse to try and play FB this year. He tried to get around the rule, and the NCAA saw that.
The rules are set, but every case is subject to the NCAA's judgment for cases like this when the spirit of the rule is broken.
He messed up. I'm not happy about it. But these are the consequences. I think the rulings are correct.