Universities are places with lots of different students, professors, and different people with different ideas, and inevitably people who make bad choices.
Universities don't often act with a single purpose or intent. That's what makes them interesting. Prone to failure and bad ideas, but also new ideas that you can't do at corporate HQ because you've got a CEO breathing down your neck.
At the University of Minnesota there's 50k+ students at the Twin Cities campus alone, 3k plus instructors. Even more at other University of Minnesota campuses.
None of those people did anything wrong. Putting the onus on them to effect change to me seems unfair. The people banned didn't do anything wrong.
Now the kernel doesn't 'need' any of their contributions, but I think this is a bad method / standard to set to penalize / discourage everyone under an umbrella when they've taken no bad actions themselves.
Although I can't put my finger on why, this ban on whole swaths of people in some ways seems very not open source.
The folks who did the thing were wrong to do so, but the vast majority of people now impacted by this ban didn't do the thing.