This might be a slightly controversial Take but I feel like the part of the students' demand that's the most unreasonable is just that... they're making it at all? Like, it's not super tenable to have the student body giving instructions to the people managing the endowment, just categorically
It’s a relatively easy ask that is clear, simple, and within adult capabilities to meet. Since these students are not at the levers of power yet.
It's so untenable that it's been done at least a half dozen times in living memory. Apartheid, tobacco, fossil fuels off the top of my head.
If they want to continue attracting students in the future, it's worth hearing them out.
I’ve worked in nonprofit development for 20 years and if a large organization with a hefty endowment was asked by a major donor to divest their portfolio from some specific stock or stocks they objected to, every one of them would at least consider it. I don’t think it’s at all unreasonable