Here we're talking about a case where students were, in 2012, accused of cheating on a bio test, and not found guilty. Meanwhile: cheating is absolutely rampant --- and has presumably only gotten much, much worse since 2012.
The standards should be high in any situation where you can significantly harm a person's life trajectory, even if not in a criminal court. Getting kicked out of Stanford for cheating could definitely derail a person's life.
The overwhelming majority of high-achieving students can't get in to Stanford to begin with, so it's hard for me to understand how being asked to leave Stanford could be ruinous.