The Cactus Classic was Jim Storey's idea, not the Arizona coaching staff (Lute, Kevin O'Neill, and all the assistants) although to be fair they did encourage it once they reaped the benefits. Storey had just as much to gain by bringing top talent to Tucson as did Lute, Pastner, and Simon. Suggesting he was some unwilling accomplice is complete revisionist history.
Also, dismissing the TOC down in North Carolina as some clean event is laughable as well. I'm guessing more money from Duke, State, and UNC boosters go to that event than all the Cactus Classic's combined except that Sendek, Lowe, K, and Roy weren't dumb enough to send an e-mail asking for donations. Or if they did there wasn't a culture of backstabbing and juvenile grudges cultivated within their athletic departments that allowed the inevitable college sports dirty laundry to be aired by a spiteful ex-employee (Roz) or a bitter and emasculated athletic director (Livengood).
Pennell and Dunlap were not technically university employees during the Classic in 2008. They had verbally agreed to become assistants under Lute but due to state law the job had to be posted for ten days before any hire could become official. So yeah, it's a bit of a gray area there but it's not like they were snooping in from the rafters. They were out in the open scouting which was acceptable under NCAA rules as they were not officially assistant coaches. It's somewhat of a ridiculous rule anyways, during these periods every coach has someone filming games which is e-mailed to them within seconds of the final whistle.
Finally, the players Arizona landed due to this event were Jamelle Horne, Brendon Lavender, Alex Jacobsen, and Zane Johnson. If the NCAA wants to revoke their scholarships I don't think you'd have many Arizona fans complaining. The Classic was an overall negative for Arizona recruiting before we self-imposed these sanctions. Regardless, all the guilty parties are gone and the new AD will have a chance to build an athletic department that does things the right way and won't throw each other under the bus due to childish grudges.