I hope they do ban them from participating. TN would own whatever few assets the NCAA has after their lawsuit.
UT agreed to abide by the actual rules of the NCAA, not some made up in midstream. Your Bama glasses are fogging up and not seeing that TN abided by all of the rules that were in place at the time. The NCAA can't go back and say, "well, gee, I wish that we had that rule a couple of years ago". Even the President of the NCAA in very public comments has said that they didn't have any NIL rules.
Had the NCAA put into rule when the court decisions opening up the NIL circus that any NIL group in a state would be considered a booster, then TN and a bunch of other schools, including your favorite, would have had to do things differently. But, that rule wasn't there, and it is next to impossible to put the toothpaste back in the tube once it it out. The NCAA is pretty well screwed as far as the NIL stuff goes. And, unfortunately, I fully expect all players to be employees of their university within the next couple of years. I don't particularly like where it is going, but, at least the playing field is being leveled a little against the ones that have openly cheated for years.