From my experience, distance learning isn't really worth very much. This applies to K-12 as well as university. I think it's entirely reasonable to expect in-person classes in the Fall if you're paying full tuition. We expect our grocery store workers to show up and do their jobs during COVID, I think it's reasonable to expect the same of university faculty.
Remote classes are not as good as in person classes.
These two things are unrelated.
If the students choose not to continue their education because the quality is degraded by remote learning, that is an entirely different matter.
Literally none of that makes it okay to evict people from the country under this policy. This isn't about the Trump administration standing up for students against universities. This is about the Trump administration shitting on immigrants.
Any reasonable administrative body would look at the circumstances involved in this and do the thing that would disrupt lives the least for the benefit of everyone involved.
"So on the one hand it's actually an improvement."
This seems kind of silly.