Depending how long this school exists, maybe the fellowships are a relict from the past. Fellowships seem to be unnecessary in the future. I guess students still have to pass entrance tests, though.
It seems to me that a fellowship would essentially allow him to work with a particular major professor. Even with technology, a given in-demand person can only mentor a certain limited number of students. So if you want a good prof, you still need to be competitive. Anyone can get a decent holo-education, but a talented author / professor would be a limited resource.