Slamdance finalist Toblo, a capture-the-flag style game in which players use the world as weapons, withdrew their game from the competition in protest of the SCMRPG removal, on Jan 9. The Toblo team let us know today that they have reinstated the game. Apparently they were forced to do so by DigiPen Institute of Technology, the college at which they created the game. From their statement:

Clearly the students accepted the decision under duress. I'm trying to gather more information before jumping to conclusions, but my assumption is that DigiPen sees the festival as a PR and recruiting activity that is more important than their students' opinions. Update: The Toblo team clarifies that DigiPen owns the IP for the game (as it does for all other student games), and thus considers the decision theirs, not the students, to make.