Waudby should never have been allowed to skirt the PT, as well as height/weight requirements, simply for the sake of football. West Point placed his value as a football player above his value as a future military officer. As heavy as he is, he could be quite a liability for his unit in a combat situation. Not to mention that, as an officer, he should not be allowed to fail standards with which his soldiers must comply.
That being said, West Point can't expect him to lose 129 pounds instantly. Obesity does not end as soon as football season ends, and that kind of weight takes a long time to lose, no matter how strict one diets. If they encouraged him to be so overweight (through allowing him to skirt the normal PT requirement), then it's a little shady to punish him for having the physical performance of a very obese person.
They should give him time to lose the weight. If he wants to serve badly enough, he'll lose it.
My point was, they allowed this for his football skills. West Point shouldn't back bill him for the scholarship.