Casey,

The only place in the rules where the phrase "making a travesty of the game" occurs is in Rule 8.3.D concerning runners running the bases in reverse order. I don't think it is appropriate to try to apply the concept to extend the rules to other areas of the game.

The rule for an intentionally dropped ball are quite specific wrt applying to infielders only. What we have here is a clever outfielder who is trying to lure the runners into making base running errors that the defense can take advantage of. In general, that is a perfectly legal act. As I said in an earlier post, depending on how deft the outfielder is in making the catch and drop, I might be willing to "stretch" my judgement and rule 'No Catch' if she is very slick with the catch and the drop. However as Mike and Don pointed out if you, the umpire, really feel that the drop was intentional, you have the criteria for a legal catch, and the most you can legally do is hollar "THAT'S A CATCH!" and let the chips fall where they may. If the runners screw up, then you call the appropriate outs and get on with the game with the hope that the offensive team learned a lesson.

JMO
SamC

If you rule someone is making a travesty of the game, you should be tossing F8 or possibly forfeit the game if other shenanigans have occurred during that game.

I consider this no more making a travesty of the game than if a first baseman feigned missing a pick-off throw by heading toward RF with the ball actually in the glove.