MySpace: bound to keep getting dirtier and uglier

We have this kernel by way of /. post that brought me to the Post's “OFF/beat” blog.
"MySpace Photo: Costs Teacher Education Degree
Teacher Sues For Diploma And Damages"

Regardless of the merits of the action's sentiment, do we really want to go down this slippery slope? If the institution in question actually has legal standing to re-direct a student's degree shouldn't more college students be very very afraid? Myspace...is just an moment away from whatever is the next administrative anathema.