Music theory seems to me to be synonymous with the study of music. I think people are virtue signaling and not thinking about this enough when they praise this change for broadening the scope of the music department. Sure, generally classical music is what we think of when we think of theory, and classical is very white/male. I agree that it would be best if someone could get a music education that isn't classical-focused. But, if you aren't studying theory, what are you studying? History and politics alone won't make you a good musician. It would be better if academics looked for a way to reconcile theory and other styles of music than emasculate their music department for the sake of immediate diversity
This sums up my thoughts on it. Music is so holistic that excluding music theory especially seems ridiculous to me.