The answer is no. It won't be competitive. Schools are successful because of students, alumni, and tradition. Schools will also continue to get the best players because they have the best coaches that are often either having been or going to the NFL.
I would think that this league would best serve those athletes who have no interest in a college education, or who are unable to qualify academically. If that is the case, we might see a lessening of the quality of JUCO players, and hence, a tightening of recruiting JUCO transfers. There would likely be a small impact on DI programs.
With the tens of thousands that pack the stadiums of the P5 programs, I find it difficult to believe this pro league could generate a significant following and compete with the all visibility of big time FBS football.