I think is the case of surmising, one needs to read over the rules, carefully.
Take#3. Read carefully. Does NOT say a coach CANNOT view a video. He may view regularly HS and JUCO players in contests. If a video is made otherwise the recruit must send it to the coach. Proper channels.
Take #7. Recruiting/scouting services cannot get paid (by institution)to send videos to an institution or be involved as intermediary in the recruiting.
Tournaments can be held on an NCAA campus. Most larger programs have their own camps to use in the assesment of a player with their own eyes. Do many institutions allow "showcase" events on campus. I am not sure.
I think it is designed to protect the athlete as to not jeapoardize his eligibility, since it is very confusing as to what is allowed and what not is allowed. I also think it helps to get the coaches out to see their recruits in actual play, instead of relying on 1 video which does not tell the whole picture. I see it as protecting a recruit who signed because the coach viewed one video, and later went back on his scholarship because he didn't live up to the video. JMO.
I don't think it hurts the legit businesses, only the recruiting/services that either don't know the rules or try to get by making a quick buck.
JMO
Who the heck would one to have their kid sign somewhere based on one video performance?