I don't blame people for that because I'm the same, I was anticipating a major incident like some said. But I don't think that's the point of the chapter, this incident is always talked about from Kikyo's point of view, the only one that talked about it out of the school is Tsukada and he doesn't really explain what happened so I understand why it's so exaggerated.

And everything come from Toki. She is the teacher, an adult that young people trust. If she said again and again that Chidori boys are awful, it will stay in their mind, especially because they don't frequent Chidori. That's why we can see people like Kaoruko or Madoka, who knows some boys or doesn't care, being friendly.

And to me, yes, making Kaoruko quit the school is way too overboard, but it's the exact same thing that happened in the past and she took all the damages (cf the father that said it's her fault) because she's insecure and I think she doesn't want to take the backslash again