Because the rules allow for a team to go up to the line and snap the ball during a specific time-frame. It is the officials job to allow teams to play within the rules.
It doesn't favor Oregon at all. Any other team could do the same thing and the officials would do the same.
On that subject, what do you think of Tedford having his players fake injuries? A good lesson to teach college kids? Cheat if the rules aren't designed to stop it!
If the players are not set yet, they can make movements at the line of scrimmage as long as they are not intended to simulate starting a play.
You see this type of thing often from college to NFL in hurry up and huddle systems where linemen point to defenders, etc. while at the line, before the QB signals to set.
and oregon is not taking the advantage of the rules as well? i'm not huge on faking injuries (though we did have two guys who never returned btw), but it seems a bit silly for oregon to ***** about this.