It's very likely, Jamie, and several alumni have openly suggested this, that the university is responding to pressure from established wealthy donors who want them to regress on LGBTQ issues. Their endowment is relatively small at about 125 million, if I'm remembering correctly, and the university itself is quite small with a student body under 2500 undergrads.
Given their small size, they may value certain deep-pocketed conservative donors over corporations and traditional academic foundations.
Still, pressuring them financially has to matter. Getting the word out there by sharing stories about their practices is important.
In the long run, though, we're always going to be faced with problems like this unless and until the Equality Act passes or something else happens to eliminate the religious exemption to Title IX.
Without that, we LGBTQ people will remain faced with paying taxes that go directly into the coffers of institutions that discriminate against us.