I don't think many players will be able to not sign their NLI, because coaches would move on. The NLI definitely favors the school, and it is a conundrum when it isn't working out at a school for one reason or another. Sometimes a school just isn't a good fit, and the player may not know that until he/she gets to campus. You can do all the research you want, but until the kid is on campus, away from their parents, etc., you don't fully know how it is going to work out.
I have a little bit of a problem with using drinking/smoking as the reason for transferring, because I'm not sure there are many colleges without this issue. However, if it seriously is not a good fit for the kid, I think the appeals process should be a little more than just a dog and pony show.