Don't be too hard on the bands. Both are actually good bands. Its difficult to play and march at the same time and the microphone set up isn't conducive for good sound in such a situation.
Of course that doesn't take away from the fact that a Michael Jackson crotch grab isn't really for prime time IMHO.
Oh the USC band was nice. I just didn't agree with their choice of song, is all. And you are right about marching vs mike placement.