It's their network (Score 3, Insightful)

I fear that, under this system, a malicious user would only have to break into one central system to wreak havoc on the entire network.

Isn't that already true?

Anyway, keep this in mind: it's their network, and therefore it's their responsibility to secure it as best they can. If you don't like their methods, that's certainly your choice, and thus your best option may be a modem and your own dialup account off-campus.

IMHO, you needn't worry about much invasion of privacy at a small liberal arts college. Such institutions tend to avoid such controversy. But make no mistake, you have no right to unfettered internet access when it's their network. It's a privilege, not a right.