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In your example, he was charging for the service, which was against the terms of use of the web site he was scraping.

So in general, do be sure to not violate a site's terms, but I don't see what that point has to do with your final comment...

What a horrible university. If a system is so bad that people will pay for the improvements, they are doing it wrong.

I don't think "people will pay for <thing>" is justification for "any university that doesn't do <thing> is horrible".

I did a similar thing (free mobile app with notification + backend to scrap), gotten a cease and desist letter and threatening not to let me graduate.

This blew up at all the Florida unis when it happened. I wonder how much it leaked out to the rest of the Internet.