Asking students to drop the class just ends up making those who choose to stay in the class feel guilty. And employing draconian measures to encourage people to drop out in order to meet administrative needs is passive aggression, plain and simple. Your beef is with admin, not with students, so don't take it out on them, don't involve them in it, and don't use them as pawns.
Worst case, sacrifice research and do all the TA work yourself. You can use this as a bargaining chip with admin next semester.