In the end, none of the social ramifications matter.
Tim Wolfe was employed to protect the standing and public reputation of the University of Missouri System. The state paid him $459,000 last year primarily to maintain the status quo and to do whatever possible to avoid the kind of social conflict and negative publicity that now will hound UM for the indefinite future.
It's a tough job, and it involves being far more "politically correct" and "inclusive" than most anyone ever would be voluntarily, but that's why they pay someone in his (former) position so handsomely.
To put it simply, Wolfe was out of touch with what was happening on his flagship campus and didn't even attempt to address the situation until it was too late.
Consider that on Sunday, the day before his resignation, Wolfe actually tried to placate his detractors by announcing that the System would announce a new diversity and inclusion policy in April 2016. Obviously, the protesters loved that.
Seriously, though, how do you not do something after someone uses human feces to paint a swastika inside a residence hall on campus, especially with all that had happened in the weeks and months prior? It's just hard to believe that no one affiliated with the university recognized the significance of what was happening and made sure that the President, Chancellor, etc. understood that they had to react. Bureaucracy at its finest, I guess.
Wolfe didn't get the job done, so he's out. Pretty simple when you actually consider what his job is (was). If I'm a Missouri alum or taxpayer, it makes perfect sense to me.
Likewise, there are a few administrators at UL that should face the same fate for the exact same reasons.