Well, we could look at it in terms of a literal interpretation of the words:
Academy: a school or college for special instruction or training in a subject
College: 1.an institution of higher learning, esp. one providing a general or liberal arts education rather than technical or professional training
2. a constituent unit of a university, furnishing courses of instruction in the liberal arts and sciences, usually leading to a bachelor's degree
University: an institution of learning of the highest level, having a college of liberal arts and a program of graduate studies together with several professional schools, as of theology, law, medicine, and engineering, and authorized to confer both undergraduate and graduate degrees (as said above)
Liberal Arts: the academic course of instruction at a college intended to provide general knowledge and comprising the arts, humanities, natural sciences, and social sciences, as opposed to professional or technical subjects.
I would say the Naval Academy is appropriately named since it has special instruction for the Navy-Marine Corps. Liberal arts school? Hardly. We certainly have a liberal arts department (Group 3), however it wouldn't be considered a college within the Academy (same goes for sciences and engineering, there is no Rickover College of Engineering). The report made a mistake in calling us liberal arts as we do not fit the definition at all.
All definitions from Dictionary.com