Man I cannot BELIEVE this. But then again you are talking about students that are officers and therefor have completed a commissioning track that included intense physical training standards - so I can see where the Schools Command folks were coming from.
My fondest memory from API in the summer of 1986 was practicing the O-course one early morning, sweaty, mouth full of sand, and then looking overhead and seeing at no more than 200 feet AGL, the diamond formation of Blue Angels A-4's streaking overhead.
Now as far as boxing goes - the whole idea behind it was to instill a culture of aggressiveness in Naval Aviation. Don't get me wrong, I totally sucked at the boxing phase - and was pummled in our class boxing smoker by the former captain of the Naval Acedemy rugby team.
I guess the boxing isn't very PC and the fact that it is no longer part of the training of future Naval Aviators sends the wrong message IMHO.