It doesn't matter some members of the band were "okay with it." (Sorry, Joobs.) There were clearly some members that weren't, and that's unacceptable.
This really irritates me. You will NEVER be able to please EVERYBODY, so why make a decision based off of a few? The majority should rule all decisions, not the "outrage crowd" that finds a reason to complain about everything. If you've never read the Harry Potter series, you missed a great nugget of truth: "If you're holding out for universal popularity, I'm afraid you're going to be in this cabin for a very long time."
Please, STOP with the "if it offends 1 person, then it shouldn't exist" garbage. That one person has a choice to not associate with what they are offended by. If you don't like the culture, you can go to a different school. You can CHOOSE to accept a scholarship and live with the perks, benefits, and yes even the parts you disagree with, OR you can CHOOSE to go to a different school and take out a student loan if you're not offered a scholarship but not be "outraged" or "offended".