BYU can't have it both ways. Either they want to run with the big dogs, or they don't want to run with the big dogs. If they don't want to run with the big dogs, they should just drop to FCS and call it good. If you want to claim you are BCS caliber...you can't run away from the BCS.
I can only hope that you are not quoting him precisely...or that he is "negotiating" through a meeting of alumni chairs. I would hope it is the former and not the latter. Misinformation is part of the game. Look at Baghdad Chip Brown. But leaking something to media is different from leaking to alumni. The alumni are the good guys.
I seriously hope your assessment is wrong. I believe you. I just hope you misheard. If what your heard is accurate and in the context you present, then BYU has basically withdrawn from major college athletics. Perhaps it really is too slimy for BYU. But I don't know that I can have anything more than a passing interest in BYU athletics if they are not competing at the top level. I will support the university, but I like my sports to be at the top level.