Of course they did. They also had every right to ask the entire Harvard faculty to drop and give them twenty. Microsoft has every right to ask for our firstborn children in their next EULA. I have every right to ask you to kiss my bum.
The point is, Harvard should not have knuckled under and handed Intel whatever they asked for on an iridium platter. I think we should expect a little more backbone from one of our most prestigious educational institutions. It's not Intel who deserves the most criticism here.
(Come to think of it, whose fault is it really, that Microsoft gets away with those EULAs?)