The DMCA already has a "Safe Harbor" clause. So... the RIAA is only promising to not sue Universities that capitulate, when the law already explicitly says they have no case? Or, did they mean they won't sue the students? (But would require spying on them, which would seem to be a violation of FERPA.)
Even if it were a blanket license to share (which isn't clear in the summary or TFA), that would only seem to help the universities not have to deal with as many DMCA requests -- but they still have to deal with a lot more record-keeping and money-shuffling.
For students, it would seem to be nice to have the option of getting a blanket license (or get-out-of-DMCA-free card); but as many have entertainment budgets in the single-$/week range, that might not be what most would want. (And... just how much does this cost, anyway? cheaper than 1 CD/month for each student? I doubt it...)
Some people pray for more than they are willing to work for.