A large part of why we're in this situation and may never get out is due to the Al Hurley administration that lasted from 1982-2002. The wheels were wobbling a little before this due to various factors that were affecting many FB programs. While SMU was about to be given the death penalty, we were in the process of committing suicide due to actions by the administration.
By the time we were forced to move back to FBS (or shut down the program), we had let our facilities degrade and significantly harmed our reputation regarding athletics. Many of us kept thinking that if we just got admin support, improved facilities, etc. we'd revive the program. There actually may have been a chance, but, of course, we had to top all of this off by making bad coaching hires, exacerbated by unnecessary extensions.
Regarding the diving eagle. At least it was an improvement over the ridiculous eagle and script used from 95-13