I have to confess that I am unsure about the James Caspian story since we are only getting one side of the story and it looks perfect. I'm not suggesting it didn't happen, but I'd like to hear both sides and see evidence of Bath Spa University saying that “engaging in a potentially politically incorrect piece of research carries a risk to the University”.
I sit on the same research ethics committee in my university. I have heard similar sentiments expressed, about research being reputationally risky--on a completely different topic. I strongly opposed this line of thinking, saying that it was completely outside the committee's jurisdiction and that we would be violating academic freedom. However, I can very easily believe Caspian's scenario. Unfortunately many academics are cowards, and when funds are tight it's easiest to try to eliminate risk.
Incidentally, sitting on this ethics committee has showed me how difficult it is to do even the most innocuous research on anyone under 18, who are classified as 'children'. By contrast, if you're a GP (like Dr Webberley) apparently you can pump tweens full of potent chemotherapy drugs after a Skype consultation!