No doubt. You are 1,000,000% correct.
The issue is with the people behind the school, the for-profit business model, the disregard for diversity in recruiting and enrollment, the lack of availability of federal loans, financial aid, etc., etc., etc. These were concerns from Day One, but they received preliminary and then provisional accreditation, and then went to town, apparently remaining focused on everything but addressing LCME concerns. And now here they are, deficient in not one, not two, but ALL areas, and not being placed on probation, but being flat out denied, which is apparently unprecedented, other than in the SJB case.
As a result, no one seems to know how an appeal will go, since no one has seen this before, other than with SJB, where there was no public disclosure until the very end, after whatever appeal was heard, when the accreditation was indeed pulled. So all the experts know is that it's happened before, and LCME apparently did not consider impact on current students in carrying out its mission.
So, I guess we need to stay tuned, because we have no idea whether LCME wants to work with management to fix this, or whether they are disgusted and want to use this as an opportunity to drive these guys out of the medical school business. It's clear that all involved want to see more medical school seats, particularly in CA, but apparently not at a cost of "anything goes."