Bored_on_the_Job – Yes, absolutely there are parents that make outrageous demands, and the administration gives in. Occasionally it could also be a decision on the side of the administration, that they falsly blame on ‘other parents’ just to cover themselves.
I have a neighbor that is/was an administrator in a Yeshiva. He told me about one family with a few boys that entered the Yeshiva after moving here from Eretz Yisroel that had to enroll using their mother’s maiden name, because their real last name was a very Sephardi-sounding name, and the administration could not risk an outrage from the other parents!!