Sure, except this has less to do with protecting the feelings of the losing team than it does about cleaning your own house.
Other peoples feelings are out of your control. Your own behavior, however, is very much under your control. A good coach should be communicating this kind of life lesson to his athletes. This is much more valuable than slaughtering a team that is clearly non-competitive. Why would you kick somebody that is already down? What could it possibly do for you? Make you a better athlete? I doubt it, the other team isn't providing you much of a chance to hone your competitive edge.
I also ran D1. I was #3 freshman in the NCAA at my event, top 10 in my recruiting class coming out of high school. I was pretty good. Funnily enough, I never felt it made me a better athlete or competitor to completely blow the doors off of someone from the art academy across the city in a pre-season meet.
Since when does sportsmanship not count? Of course the opposing team will survive. As you say, it's not so big of a deal in the cosmic scheme.
But whether or not the losing coach should face consequences of his own is a separate issue. If I am the administrator, there's not much I can do for the losing team, other than say "hey, sorry, that was bit a sh!tty thing to do." What I CAN do, however, is make sure my own house is clean, by telling my coach, "hey d!ckhead, have a bit of class next time". He got suspended for A GAME, not a season. A slap on the wrist.
We can complain about this "liberal" attitude ruining sports, but I'd argue that blaming other people for problems is a pretty spineless position to take... What happened to personal responsibility? As conservatives WE should be upholding the values of community. Character has value.