Moreover, the theory suggests the entire University is an Amyr institution. These were the poepl responsible for carrying out Tehlin justice and the Iron Law of Atur. The same people who razed Caluptena, the previous site of enlightened learning, who burned Arcanists, folks with knacks, gingers... It doesn't fit well.
Assuming Kvothe gets in, it's also kind of anticlimactic. Kvothe gets in and finds shelves full of books. The alarms go off and he's boned.
There's a good case for Lorren having ulterior motives, but not fot the entire University - even the entire Arcanum. Yet, anyway.
Forgive my ignorance. I don't recall the Amyr being the ones who burned Caluptena. Did I miss that?
Also, regarding the Amyr being the ones who carried out the Iron Law; that only applied to malfeasance, which the University would want to discourage anyway. Also, if we look at the Amyr as two seperate institutions, Selitos & Pals (aka the supernatural Amyr) and the human judges (a cover, perhaps, for S & Pals), that starts to make more sense. The human judges could serve as a method for "legitimizing" S & Pals' activities, allowing them to more directly influence the course of human affairs. Kvothe brings something like this idea up in WMF. I don't have the exact quote, but he said something along the lines of "What if there were a hidden faction inside the Amyr (that Gibea was a part of)?"