Well, based upon some of the tasteless things they've done in the past (i.e., using the Cross as a drumstick at Notre Dame; mocking the death of millions of Irish in the Potato famine; doing a polygamy skit at BYU; using a white van at OJ Simpson's alma mater USC), I can't blame the Orange Bowl for not wanting to attract negative publicity.
VA Tech didn't perform at halftime, either, and both bands were allowed to participate in the pre-game. It sounds like a fair enough compromise.