Let me try to explain, the network was quite organic for that place and time, I guess: The dorms administration really had no idea what internet is, and while the network wasn't officially sanctioned, it wasn't (very) actively prohibited either. It wasn't regulated, and obviously was a nuisance for the people managing the dorms. But at the same time I don't remember anyone being punished for maintaining it. It existed in a gray area so to speak: The network provided a utility to the students, but the school did not want to be responsible for it and also did not provide any alternatives. So the school administration turned a blind eye to the network for the most part, I think, until it was finally officially legalized.
Btw, I found a link to the dorms forum ("forum.local"): https://forumlocal.ru/ubbthreads.php it still exists, and its topics are going back to the times described in the article. Some old moderators are also still there (!).
Building a network puts you in trouble? Cooperation, technical skills and social competence is what universities are meant to teach.
It's bad that an university could punish students for that... and quite appalling that people accept this state of affairs.
https://en.wikipedia.org/wiki/MAC_spoofing
https://en.wikipedia.org/wiki/Monitor_mode
EDIT: yes, and this is insane https://arstechnica.com/tech-policy/2021/10/viewing-website-...
This is important because many students today are fearful of other people even when on campus transit with a driver, so you better have a verifiable reason why you should be there.
2) University cops in the US are usually real cops - armed and authorized to arrest or shoot you - not "mall cops."
If you assume your students are helpless immature idiots, it's kind of a self-fulfilling prophecy.