Well, my neighbors to the north have certainly found themselves in an interesting situation.
I think the "policy" is BS for basketball. Frankly, the e-mail just makes it worse - misinterpreting NFHS rules and claiming that liability doesn't apply. Unfortunately, it's the courts that decide whether or not a ref is liable, not some staffer in the MIAA.
Finally, if a PDF titled "Sportsmanship Handshake Report Form" isn't a sign of the apocalypse, I don't know what is.