No, it's totally okay to feel sorry for good, conscientious researchers and students at the University of Minnesota who have been working on the kernel in good faith. It's sad that the actions of irresponsible researchers and associated review boards affect people who had nothing to do with professor Lu's research.
It's not wrong for the kernel community to decide to blanket ban contributions from the university. It obviously makes sense to ban contributions from institutions which are known to send intentionally buggy commits disguised as fixes. That doesn't mean you can't feel bad for the innocent students and professors.