Blue, I agree with everything you've said. When I first read about this, I felt sick to my stomach. I remember the elation when Hoke landed Swenson, as Erik was supposed to be the next elite OL at Michigan. He shared stories about his lifelong fandom for Michigan and Jake Long being his idol (hence the #77 Swenson wore). I told my die-hard OSU fan friend about these rumors yesterday, as the smoke was building. I admitted that if Swenson was shown the door, I couldn't call out Urban and the Sabans of the recruiting world, because Harbaugh is no different. If things are as they seem at face value, then this is the WRONG way to handle recruiting. No bones about it.
The thing is, there is a very small group of people that know what actually happened here. Everything we read is hearsay, for now, and one-sided as the coaches can't comment until the kids have signed. Sam Webb, a trusted recruiting source for Michigan, said that he doesn't even know of the conversations that transpired, but believes that the situation is "regrettable." The other Michigan recruiting analysts that I respect above all others, Steve Lorenz/Steve Wiltfong of 247, echoed similar thoughts about not knowing actual details of the back and forth, but also stated that Swenson was on their list of current Michigan commits that they didn't expect to be in the 2016 class when all is said and done. A list that was created some time ago, not two days ago. Was it just a hunch? Did they know something a while ago? Your guess is as good as mine, but there is a solid possibility that Swenson knew what was ahead of him some time ago. At the same time, I've never heard of this Bobby Kunz fellow, and I sure as Hell wouldn't be using some [relatively] unknown source to shape an opinion. His "texting" screenshot could be an actual conversation with Swenson, but I wouldn't bet on it. FWIW on EJ Price, from what I've read, Price didn't even include Michigan in his final group and is a long shot. So, the idea that Swenson is being cut to make room for Price is a little premature.
Those of you that remember me from when I posted here regularly know that I bleed Maize and Blue, but I'm not going to claim Michigan is holier than thou. Major college football programs are under a microscope, and part of the rivalry is to call out our rivals when they do something stupid. JT Barrett: DWI, Fitz Touissant: DWI. Driving with suspended license: Denard/Elliott. Stolen laptop/repeated drug offenses, hitting a woman at a bar/sucker punching a dude a bar, soliciting hookers/recording relations without permission, allegations of rape/allegations of rape, offers being pulled late/failing to tell a recruit that his position coach is leaving for the NFL the day after NSD. The list goes on and on. OSU, UM, ND, USC, Okl, Fla, Bama, and about 20 more programs are all guilty of it, but your rival is still going to let you hear about it when it's the story of the moment.
TL;DR If Swenson actually JUST found out that his scholly was being pulled and it's for no reason other than he's not good enough in JH's opinion, then it is absolutely despicable and is on par with oversigning practices, but there's a solid chance that things aren't quite as cut and dry as they seem.