Agreed. If you don't like the rule then change it. Discretions or not, Masoli met all of the requirements to transfer in.
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Actually the rule is the player can not, but if certian exceptions are met the NCAA can determine on a case by case that a waiver can be applied to the rule if the player meets those requiremnets to receive the waiver. So yes he did what he had to and met the requirments and the NCAA then decided they would grant him the waiver and allow him to play.
My issue with the NCAA now is what is the difference between today and Tuesday. Nothing changed so it just goes to show you how screwed up the NCAA is.