The Wolverines will be a title contender next season with this excellent news. With him and Hardaway back, along with a superb recruiting class, Michigan B-ball is finally back on its way to the top tier. Thank you Coach Beilein.
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Only way I would be ok with the 2-yr rule is if they adopted a MLB-type draft where essentially anyone but freshmen are "entered" into the draft, but you don't lose your eligibility and can go/return to school even if drafted.
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A star driven sport can't afford to lose the top 20 players available annually to the NBA. That's the number of guys (perhaps even more) that would jump if you made them stay two years. The lack of talent in college basketball would help teams like ours compete, but would deplete the quality of play to such slow and methodical levels that it would mirror the almost completely irrelevant sport that is college baseball.
The ideal scenario is to force 2 and done on EVERYONE. I can't think of single 2 and done player that hasn't helped his team in college get deep in the NCAA tournament AND helped his team greatly and immediately.