I guess I'm very used to the sitting out one year rule, as that's the way it is in HS sports around here, i.e. if you decide to transfer to a private HS as a junior, you can't play on a Varsity team for one year.
If the coach of a college team more or less tells a player that he isn't wanted, I don't see why a player has to sit out if he wants to transfer to another school.
A poster above nailed it, though. The whole "sports scholarship" things is nuts. Go to minor league teams if all you want is to play baseball.