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Employers are not free to set any arbitrary standard they might choose. I don't remember a whole lot from law class, but IRC the standard CANNOT be arbitrary if it discriminates against a group of people with a perticular characteristic - and I'm relatively sure that Disability is on the list. If they are sued they must show why that group of people cannot get the job done.
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As an attorney, I can tell you you are wrong about just about all of this.
First, there's no protection status for those with vision issues, especially in an area (officiating) where vision is of paramount importance. Do you really think if the Big 10 offered me a contract for next year and I lost my total vision in an accident, they'd wouldn't be able to terminate the contract? The ADA deals with severe disabilities that impair major life activities. This particular injury doesn't fall under the former and officiating doesn't fall under the latter.
Second, he is an independent contractor rather than an employee and is likely not covered. If someone has a case to the contrary let me know.
Finally, the burdens on employers have nothing to do with groups, but individuals.
Frankly, I don't think he has a case, but the Big 10 should have handled this thing a little better by putting him in a replay position or by not assigning him games with that coach. If he's going to the Orange Bowl, he's obviously got good reviews from some other coaches, and we all know that coach comfortability with an individual official often has little to do with that official's specific calls being correct or incorrect. I'm sure the Big 10 will settle the matter but this guy has burned his bridge.