I don't think anyone is advocating pulling a scholarship. I noted this because you must participate in order to maintain your scholarship. Everybody has to follow the same rule.
So why must an exception be made for Overshown? What makes him special as opposed to everyone else?
Simply make Overshown aware that in order to maintain eligibility for his scholarship, he'll have to consider a different way of protesting.
As for your other questions, if they don't want to follow the rules like everybody else, then perhaps its best they move on. I don't care if we end up 0-10. Otherwise, what's next? Because there most definitely will be a next. And a next. And another next.
I truly hope Overshown had a conversation with TH before going public with this.
In the end, we may all respect OVershown for sacrificing his career or perhaps part of his career to make a stand. But he will lose something to gain something. Thats too bad because it could have been done differently with a little more thought.