Only a jerk like Spurrier (or another SEC coach) could rationalize like this. It's pretty basic ethics.
If you ask someone to sign a binding commitment, than you should be bound to deliver as well. This is screwing around with the future of young men.
The solution is simple. If a kid signs a LOI and wants to back out, he can't unless he's released by the University.
So on the flip side, if the University extends a written offer of scholarship, they have to deliver as well...or they lose that scholarship for the year. The only way they can offer it to another player, is if the initial offeree lands elsewhere and releases his claim to the scholarship, OR if he is unable to qualify for admission.
But you can only offer, the number you have available. Period. It's easy to track and easy to enforce thru the LOI.