Rails' insight deserves repeating: "To that end, I was surprised when FSS was rolled out in its current form because of two major red flags imho:
1) How can a two-bit scouting service be virtually 99% accurate with 1800 players when college coaches and pro scouts spend millions of dollars and hundreds of hours and miss "potential" on a regular basis. Undrafted players succeed many times while "can't miss" first rounders miss regularly.
2) The cost structure by state, not division and in the global world in which we live, the exclusion of PR and international recruits."
These issues are at the core of the problem. The FSS service provides reliably complete information in a cost structure that is not scaled by division. Anyone with multiple IDs in the same world gains an advantage over those that don't by simple economy. I trust that most users will not adjust their strategies to avail themselves of this advantage, but, to some minor extent, they have it anyhow.
The fix suggests itself: adjust the cost structure to 2 or 3 separate reports that could be purchased by any team on a state by state basis. That is, make obtaining reports on overall ranked players cost more money, than those that are ranked below #150 (or wherever the effective DII cutoff is intended to be). There could be regional discounts offered, but not blanket discounts that apply across the whole country.
Secondly, the FSS reports should be less complete (still as accurate, but incomplete). This would have the result that scouting of players would still be necessary on an individual basis, but the cost scale for long range scouting would effectively mitigate some of the issues.
With FSS costs scaled by division, only regionally applied discounts available, and informational completeness adjusted, then I don't see why individuals couldn't have multiple teams under different IDs in the same world under the 1000 mile rule. If FSS remains in its current form, then, IMHO, the rule must be against alias accounts existing in the same world no matter the distance.