You could be right. It will definitely scare off some kids. But he's also shown that he wants hard workers and some kids want to play for a coach that'll push them. Sounds like SIU is full of kids that can't handle that.
Generally speaking, throwing the team under the bus isn't good, but if everything else has failed, it's a last resort option that I can support. Especially when the evidence is there. Sometimes, players will react in a positive way to this. It's no guarantee but it's now put up or shut up time for these guys. Prove the man right or wrong with how you play.
Those who respond will be rewarded with playing time. Those who don't, won't be there next year and good luck finding someone who wants to take in someone like that.
I will say though that I was on the SIU board a bit ago and they seem to be split on it.