The main reason CA can set precedent such as this is because they have the WORLD's 5th largest economy and a 10th of the population of the US. It'll be interesting to see if/when other states adopt similar policies. I don't think it's over. The NCAA will fight this tooth and nail. Whether or not CA is willing to go up against the NCAA and it's war chest is yet to be seen.
Football players will be able to "earn" money from their images, likenesses, etc. after they've started their careers in the school of their choice. The way it may effect recruiting is the bag schools may have to pay even more for top players; especially if said school is in a smaller market; ie Baga, Clem$on, OK, etc.