Sure, this is "just" a university research project this time. And sure, this is done in bad taste.
But there are legitimately malicious national actors (well, including the US govt and the various 3 letter agencies) that absolutely do this. And the national actors are likely even far more sophisticated than a couple of PhD students. They have the time, resources and energy to do this over a very long period of time.
I think on the whole, this is very net positive in that it reveals the vulnerability of open source kernel development. Despite, how shitty it feels.