To answer the OP's question, I think there are several reasons:
1) Very few people are truly religious anymore. Therefore, there isn't anyone to get offended.
2) The Catholics actually thought it was funny and didn't take it seriously.
3) Nobody knew, from the antics of Xavier's fanbase, they were a Catholic University. Even Xavier students are asking each other today, "We're Catholic?"
4) Nobody knows nor cares about Xavier University? These were the people too dumb to get into Cincinnati and that's saying something?
5) West Virginia's one cross dressing student was so offended they (gotta use the proper terminology) actually went into the bathroom of their biological sex today in protest.