> They don’t want us to allow uploading because it puts them at
> legal risk.
> They are indifferent about us downloading.

Oh I understand - sorry that I have been a kind of suspicous.

Then disabling "Accept incoming host" is not what you want, under your university's term you should better disable "Share files" in the Upload-tab.
It's possible that the law in your country does not only forbid the distribution of possible DMCA critical contents, but also to be part of a network which theoretically could, even if you don't. I personally think to be part of such an network will not break laws. Otherwise all ISP would be guilty in sharing copyright protected stuff or even much worse kidporn. I think all this is no technical problem, it's a socitey problem... but I'm no lawyer.

However, moving the "accept incoming host" in the setup dialog would IMHO makes more sense. What do you think?