A few thoughts:
Would more SEC or P5 baseball scholarships impact overall competitive balance in D1? I think it would. The partial scholarship system allows lower ranked teams to attract better prospects by giving them a bigger percentage than a "better" team might. But even with more scholarships, the best teams will always lose quality players due to playing time. Scholarship or not, guys want to play.
Could you maintain the current CWS model when some conferences allow more scholarships than others? I think so. With the current system there are many schools that don't fund the maximum 11.7, so those schools are already at a disadvantage. If the change was limited to the SEC, that would definitely give those schools an advantage. If all of the P5 conferences adopted it, the Coastal Carolinas and Fresna States of the world would probably have a harder time recruiting quality players. We might see fewer/no non-P5 teams making the trip to Omaha.
More scholarships would result in more overall talent. Every year there are a few guys who choose football over baseball because of the scholarships. Some guys also sign pro deals because they can't get a baseball full scholarship. This would really open up college baseball for kids/families who have no money available for college. A 50% baseball scholarship is not feasible for many of those kids.
Would teams recruit more out-of-state kids at public schools in states like Florida and Georgia where state sponsored scholarships are available to many in-state student athletes? In some cases I think schools would. With Florida specifically, maybe not since there are so many quality in-state recruits.
One of the Oregon AD quotes annoyed me. "Who can afford to pay for all these out-of-state scholarships?" Out-of state students don't cost the school any more than in-state students.Those kids go to the same classes, sleep in the same beds, and eat the same food. If you were talking about an out-of-state student who was paying full tuition, then yes, that means less revenue to the school. But that's not the situation here.