I found this story very weird and kind of sad. I have no idea about second life, but here's the jist to me. and It's just creepy to me that someone would set up a virtual world for individuals to go out and make whatever they want to make, and then tear it down because what they make isn't what the guy who runs it likes. Even creepier that it's a matter of education. But kind of amusing that it parallels key elements of Demolition Man and Old School.
That's bizare. I did some work for my school's campus on 2nd Life. There were restrictions on what we could do but we had a lot of free reign to design and implement it the way the university wanted.