Hmmm,
I'm actually going to disagree with you on this one, Seretogis.
While they put a "disclaimer" on their site, there is only one interpretation I've EVER heard for 'fudgepacker' and that is as a derogatory for homosexuals, refering to the practice of anal sex.
Had there been another interpretation in common use, I could see the PC argument, but I don't see it possible here.
I think it means exactly what we are supposed to think it means: U of M are a bunch of "fags".
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"Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience." – C. S. Lewis
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