At the bare minimum, whether or not you believe MIT aided the prosecution over the defense (and I believe they did), it seems clear to me that Aaron and his family (his father is an alumnus, and worked for the MIT Media Lab) deserved better than "neutrality" from the MIT administration, if for no other reason than that I can't think of a single conceivable technical reason to call what Aaron did "felony" hacking.
By standing pat, MIT also contributed to the ongoing prosecutorial weaponization of laws like the CFAA, which makes a felony of a wide range of activities that most hackers would not even categorize as misdemeanors, to say nothing of crimes that bar you from voting or holding most jobs. It is a terrible precedent no matter how you look at it.