Doesn't seem that out there to me. Both schools are arms of the state. The annual game was a significant and longstanding piece of Texas' culture, thoroughly enjoyed and anticipated by many citizens of our state. For many people, watching or going to that game is central in their memories of spending Thanksgiving with loved ones. Putting on that game was a benefit these two public universities bestowed on the state for a hundred years, and they stopped doing it over some bruised egos and a few million bucks. I really don't see why it's outrageous at all for the legislature to step in and tell both schools to get over themselves and make with the football already.
The Surly and TexAgs contingents are always against it, but ordinary fans and Texans in general liked the game, they're annoyed it went away and they'd like it to come back. Most people don't give a shit about which side started this slap fight, or whether one team "deserves" to play the other, or who's scared to play or any of that.