pro and college teams pay him millions of dollars a year to make these judgement calls and decisions and you and I (OK... I'll just speak for myself) are pounding keyboards on an anonymous fan message board likely making significantly less than that at the jobs we are ignoring at the moment to read stuff on CB.
If KY's judgement is correct on this, communicating this to Isaac and his family so that they can make the best decision for his future is indeed the kindest and most honorable way to handle this.
The world would be a better place if more people communicated with the type of 'kind candor' that it sounds (from Isaac's father last night) KY and the coaching staff demonstrated.