From what I have read, the university thing is a film or media program that is using the Sims in their curriculum. Since the work that is created could potentially be used to promote the school they would need clear and clean copyright on all of the content to prevent getting sued. After getting EA's permission to use the game in this manner the next big hurdle would be finding a pool of copyright clean addons and I think that is where this agreement comes in. If indeed that is what is going on I doubt we have much to worry about as I doubt they would care much about what happens to the content outside of the university.
You know, that's interesting...and I can see a reason as to why they wouldn't want to "share the goodies" then. However, wouldn't it be a better idea to invite people from their own graphic design program to be the object creators? Great learning experience for them, and technically then the uni is being paid by the creators for the opportunity to make things.
Seriously, that's how I would set it up. Students get fun and learning, uni keeps getting their money and spends less out.
If this is legit, why even mention it on her site? Just say she's no longer going to have pay items. Everyone will be happy. Now all she's done is make a bunch of sheeple cry because they know they can't have everything.