The fair play rule is really in place to keep coaches at upper levels from dropping down and ruining another coaches class. Example D1A going after a bunch of D2 recruits. It really has to be "obvious". Within the same level, its just not that obvious...despite what it looks like to you.
When it is within the same division, one coach may have an "advantage" over another based on: vision, number of open schollies (money), distance, reputation, loyalty, and,lastly, skill in recruiting (what tools to use...AC Scouts vs HC visits, etc).
And yes, those players will revert to you....just like jibe describes.