That's fair, and I agree a more wholesale policy could make more sense (though a government may still wish to limit some redistributed funds to being spendable only on things like college education, in which case you're approximately back in the same effective place). Bringing it back to the original topic, though, that sort of system is outside the remit of the Seattle city government, so I still think it makes sense for them to limit the rule's applicability. (It might not even be legal for them to apply it to universities anyway -- I don't know what Washington state delegates to cities in that way -- but that's orthogonal.)

Obviously, I think your second paragraph is an extreme overreaction; I have no stake in any university's profits, and I am not attempting to "emotionally manipulate" you.