Well, who sympathizes with whom, bo, is of course not a legal question. But a public university only allowing speech that is consistent with its values is.
Needless to say, I don't need to resort to obscure 1906 cases from the Minnesota Supreme Court to find relevant cases -- it is the federal first amendment we're talking about, after all. The most relevant cases, off the top of my head, are those that invalidated campus hate speech codes. See Doe v. University of Michigan, which was a 1989 federal district court case; and R.A.V. v City of St. Paul, a unanimous Supreme Court decision striking down a municipal hate speech code (though this one wasn't a university).
This was shortly after applied by the fourth circuit in Iota Xi Chapter of Sigma Chi Fraternity v. George Mason University (1993), which prevented a public university from banning a racially charged "ugly woman contest" by one of its fraternities. ( http://cehdclass.gmu.edu/jkozlows/gmu1az.htm ).
So no, it's not true that a public university has "the right to refuse to host an event if it doesn't fit within their values." You may, of course, say that it *should* (though you likely wouldn't if you greatly valued free speech), but in any event, it does not.