Any college organization (or any other organization for that matter) is subject to hazing laws. And that's exactly what this was... hazing. Fraternities and Sororities get charters pulled daily because of stupid things like this. No matter how petty the allegations may seem, it needs to be consistently unacceptable on every level.
Many times, it's the other organizations on campus that are the biggest offenders. There is a microscope on Greek life that makes it difficult to get away with anything controversial. Collegiate marching bands are quickly joining those ranks. It would have been negligent not to investigate claims made by a member, and irresponsible to let that go unchecked. What is only a small black eye now, could have been a much bigger bruise further down the road. After tat-gate, the university is just trying to save face.
It sucks. I get it. Trust me. They take away all of the harmless fun. It's the 21st century though and organizations need to adapt to the pc culture we now live in.