I know there are many lawyers who read this blog, so feel free to chime in in the comments. Although O'Bannon brought the case, I imagine the class action nature of the suit will complicate things and dilute some payouts. But Flutie definitely should have money coming to him given how much others have made off of his play over the years.
I don't think this will change the nature of paying current student athletes. Hopefully it will be resolved with some clear guidelines for future use. These kids put a lot on the line and deserve to share in some of the wealth they generate.