Everyone is making good points. I don't believe this is the end of college sports, but it will create major changes to the system as we know it. If there is an appeal of the law to the US Supreme Court, I doubt the Court even rules on it. and if the US Supreme Court does review it, I don't think they change or reverse it.
I believe a few states will follow immediately if it appears that the Californian law will stay as is on the books.
The bigger schools will undoubtedly have an advantage, as will schools in more populous areas. However, some cities that have professional teams, may not have as much advantage.
If Kentucky passes a similar law, then UK will have a major advantage since we have no professional teams nearby, and the ones that are (Reds, Indy, Nashville) are not marketing into Kentucky that often.
But overall, Kids that normally got paid under the table, because of their talent, will get paid over the table. Will it be something that is public knowledge, probably not, but it will be apparent which schools/boosters/etc have an advantage, in just a couple of years after the laws go into affect.