When looking at dI/dt we have a term gamma*I, this is the rate in which infectious become recovered.
Why is this dependent on I, the number of infectious people?
Since if you have lots infectious people, wont it take the same amount of time for them to recover as a smaller group of people? So this rate should be a constant?

If we have $I$ infected people and the recovery rate of the disease is $\gamma$, then in one time cycle, $\gamma I$ people recover from the infection. The time required for these people to recover is constant; it's just that due to more number of people being infected, more number of people will also recover from the disease in a given duration of time.