I understand why people might take offense to the University of Spoiled Children slight, but it is decisions like this one by USC that cement USC’s reputation as the place for rich kids with a family connection to the school. Likewise with its Trojan Transfer legacy program. The school is thumbing its nose at the law so it can keep admitting such applicants, even at the cost of losing state funds.
This isn’t to say that USC isn’t an very good school, or that it doesn’t value diversity It obviously is and does. Same for Yale, if that needs saying. But these are both places where the children of the mostly rich and well connected alums have a huge admission advantage over applicants who are otherwise similarly situated. That is bound to be reflected in the reputations of such schools.