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The reasoning behind the move is simple the hardship waiver has been, in the eyes of some, abused by some athletes and some schools to gain an unfair advantage in filling out a roster. Those who see the process as unfair seek to end it.
There is a carrot however, the hardship waiver will still exist, just as a means of getting an additional year of eligibility. For example, player X from university Y has a family member who has taken ill. Player X would like to transfer to school A because that is the school nearest his hometown. Under the new system player X will have to sit out the season following his transfer no matter what. The difference is that if player X is granted a hardship waiver he will have the option of a 6th season to complete 4 seasons of on court play. This is a shocking, but that is actually a good idea.
The proposal will be voted on in August, at about the same time that the NCAA is planning to assist in its own destruction.