Next time, ice a legal roster. Doesn't matter that he didn't play, you could make the arguement that he could have, and would have if their starter was pulled/injured. He was dressed and would have played if called upon.
Rules are rules. I think it's classy that SAIT will play them again, rather than just take the trophy, which within the rules is their right.
Might be as stupid a rule as getting two minutes for putting the puck over the glass in your own end, but it's still a rule. You can't, as an organization, turn a blind eye to your own rules. Period.
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