This is not directed at Howe I only wish him the best.
Let me get this straight though.A wrestler can take a regular redshirt which is available to all NCAA athletes in their sport.
Correct, except for a few exceptions such as DIII athletes and Ivy League athletes. Note that if an athlete takes a medical redshirt this would be covered here also.
Then the best of the best wrestlers can also take an Olympic redshirt in which they can spend an entire year concentrating completely on training for the Olympic trials. Though it freestyle it is the best training against the best training partners with no "burden" of academics.
Correct, this is for all Olympic sports such as swimming, gymnastics, track and field, etc. not just wrestling.
Then these "best of the best" get to transfer to pretty much the school of their choice since they have already sat out a year.
False, if an athlete intends to transfer they would need to be released even though they sat out a year. Both Howe and Rutt needed to ask Barry Davis/Wisconsin for a release in order to not jeopardize a year of eligibility.
Even if they don't transfer these top level wrestlers with a quantum leap of training and an extra year go back and compete as collegians against other wrestlers without that advantage.
In that sense yes you are correct.