Thank you summer for a good intelligent reply.
The part of your reply I quote above gets to perhaps the biggest reason why USF should have held off on the firing. The firing was giving in to not just donor blackmail, but far worse was giving in to death threats. Death threats = terrorism in my book. If they were to fire him at all, USF should have held off until after the death threatener was behind bars. Now that the man is fired, threats will stop, making it hard to catch the threatener, and the threatener will feel he's gotten away with something. Next time, emboldened, he'll push the envelope farther. It doesn't matter that the threatener(s) are probably one of the rare Jewish terrorists rather than one of the much more numerous Islamist terrorists. In my book, they're all going down.
I've only been on FreeRepublic a few days, and one disturbing theme I've found is that there is a high concern with safety and low-risk. No conservative would have seen safety concerns, let along a concern with avoding lawsuits, as trumping principle before the 1960's. In the short run, giving in to the "disruption" caused by death threats may give safety. Thank God President Bush did not choose to give us such short term safety in response to September 11.