Where to start...
First, the scholarship can be used at non-Canadian schools. So if a guy is 20 or 21 and hasn't received a D1 scholarship, he could use his CHL scholarship at a D3 school and quite possibly get some financial aid on top of that. Might very well end up with a better situation than a partial schollie from a D1 school. I would think that D3 schools should welcome CHL scholarships to cut down on the financial aid.
"Low end Canada state school"... you mean like Toronto, McGill, UBC (my alma mater)? These three schools are consistently ranked in the top 50 in the world-- Toronto typically lands in the top 25-- and there's one for each of the three CHL leagues. Plus plenty of other good Canadian schools. Some Americans do attend university in Canada, believe it or not, and demand is rising at the better ones.
UBC receiving more applications from the U.S.: up by 27%
Wealthy USA hockey people... like Matthews' family? Eichel's family? I could go on and on here... and of course, the CHL scholarship will mean next to nothing to the genuine pro prospects, most of the sure-fire four-year D1 prospects, and kids from wealthy families... but there are going to be lots of solid junior players in Canada and the US who don't fit into any of those categories.