While I'll admit that this incident didn't look great, the early reactions are worse than what it really was. Swenson was asked to camp at Michigan so the coaches could work him out in person because they hadn't met him. He declined the invitation. He was then directly told they would instead evaluate his game tape as his season progressed. From there, knowing the coaches were evaluating him, he put in a lackluster effort on the season. Swenson was encouraged by the Michigan coaches to Look at other schools and use all of his official visits in November. The coaches had reduced their contact with him and cancelled his official visit to Michigan. Swenson essentially burried his head in the sand and pushed forward, probably thinking there was no way they would pull his scholarship. Well, they did, and he was pissed so he lashed out publicly. His high school coach even stated there were signs earlier it was headed this direction. Also, after all of this, Harbaugh admitted to making mistakes in this recruitment and stated that corrections would be made. Now Michigan is clear that even when you commit, it is conditional on your performance. No coasting your senior year.
On the other side, I can't remember his name, but I think it was the same year, tOSU oversigned and took a CB late (Arnette), because they let a kid early enroll, looked at his knee and decided they didn't want to roll the dice. They attempted to medical the kid they early enrolled. I think it was Dean. The kid got a second opinion from an expert that said he could still play. So he left, but not after losing a year because he had to sit out for transferring. In my opinion, tOSU coaches got the higher rated recruit late, so it put them in a position to push out a kid that was more of a gamble because of an injury, so they did. To me that is more egregious.
Either way, the process is stacked against the recruits mostly. It would be nice to see them get some protections.