Disgusting, moronic, offensive and stupid. That is clear.
Now, what do we do with 18 year olds who act like that? Outside of college idiots can be idiots. Of course, if caught on tape they might lose their jobs as no self-respecting company would want to be associated with that behavior.
I think a private University has a right to set expectations of behavior for the students. And I think they have a right ot enforce those expectations. If the expectations were clear, and the consequences were clear, and the idiots chose to ignore both of those, I feel the University has a right to enforce those consequences. BUT if the expectations were NOT spelled out I think there is a problem jumping in after the fact to enforce a punishment.