I agree. While the dept Chair doesn't have to be the brightest bulb in bunch, I do expect that person to have a PhD.
I am on the west coast and had been looking at schools/nice towns in the west for possible positions. Boulder was on that list, but no more. I can understand the Ethnic Studies dept being PC, but if the whole university is as PC as you say, it's not the place for me. It's hard enough to live with the normal amount of idiotic leftness that you find on most campuses, I don't need to go someplace where people like Churchill are hired, promoted, and revered.
btw - one of my classmates worked at UIC before starting her doctorate. Small world, eh?