I agree with you that this is bull, but I think that legal action of some sort will happen. Especially with Baylor involved. They have a history for pulling stunts with the help of the Texas legislature. (its the only reason they are in the Big 12 now).
I actually think a week from now Tech and Okie State will be dropped from the rumor, much how Missouri didn't land in the Big Ten immediately. If the PAC 10 was worried about ruffling feathers Baylor would be on the ticket instead of Okie State or Tech because they aren't meal ticket teams anyway. The reason they are there now is because A&M is still pondering the SEC.
The legal stuff will really hit the fan when Tech and Baylor aren't included. Football is king in Texas and those schools have the connections in the state legislature to really cause trouble for UT and A&M. Recalling what happened in the SWC dissolution in the mid-90's, those two schools could force inclusion or possibly cancel the whole shebang altogether.
SPOILER: The reason the Big Ten didn't expand past Nebraska is that they still want Notre Dame and didn't want to be stuck with 13. To me, Nebraska seems like a great third school, a school you add once you've already tied up NY to round out the conference, not a headliner. Missouri, Syracuse and/or Rutgers could very well end up in the Big Ten when all is said and done.
Baylor has a HUGE problem if they want to get in: they lack the political power they had back in the '90s. Tech has much more political clout, which is why they're being included in the discussions, and Baylor isn't. Tech has at least five state senators (as well as the governor) with ties to the university, and Baylor only has two senators with ties.This means if Baylor tries to force their way in again, that those with ties to Texas, A&M, and Tech will block any attempts by Baylor to be included in any moves.
What I CAN see from the TX Legislative session on Wednesday may be an attempt to keep A&M with UT and Tech. However, I think Baylor is dead in the water as far as trying to keep up with any moves.