I mean I can't judge because I'm not a high schooler who just ran 3:34, but I think there a huge upside to running at least a single NCAA season. There's the social aspect of being on a university team for one thing, but the NCAA teaches you how to race. Yea he ran 3:34 but he came 5th, and if he's running pro his only benchmark is whether or not he can win races. Plenty of exceptional talents enter the NCAA but can't win a race, and learn to do so over their career. When they get to the pro ranks they can compete for championships.
If you are doubting the importance of being able to race, look at Sam Tanner.. runs a 3:34 and on multiple occasions makes it clear that he's got a lot to learn when things are tactical
If he believes he will get faster, then that contract will be waiting for him after he runs a year of NCAA and shows that he's that much better (or not). Athing Mu, Sydney McLaughlin etc. at least gave it a year and showed that they are levels ahead, and I don't think Hobbs is quite at that level