I read this as the OP has decided he doesn't want to fight it, but the folks do.
I agree with other posters regarding questions and reviewing the AFA thread.
He may want to move on, but when he realizes they can hand him a 6 figure bill for his education, with no degree, he may agree with his parents to fight it.
There is another thread here, albeit, ROTC that illustrates the Navy isn't joking when collecting money. 143K for an NROTC scholarship. No academic issue, no honor issue, just cut and handed a bill.
http://www.serviceacademyforums.com/showthread.php?t=27658
This is not oh well, that is AF. This is Navy and money paid out. NROTC grads will go AD just like USNA. The Navy counted on them in their manpower planning.
He is better off than either of those examples, but he needs to realize at this late of date, transferring to a college fall semester back at home are probably close to nil. His family life may be tense, and tenser yet if he is handed a bill from USNA that might equate to 1000 a month for 10 yrs.
He may want to move on, but I think that is a knee jerk reaction. I would tell him to lurk here and read those threads. I bet it will be a reality wake up call about how he should approach it.
Can he get a degree from another school by transferring credits? Yes! However, he also needs to realize even IS, living at home for 2 yrs will incur more debt. Like I said, chances are he will not be able to attend college next fall because the late date. Maybe Jan. You stated poor academics, that is another twist...typically grades matter for transferring credits too.
Not asking, but when you say poor grades and honor violation, I immediately think academic issues...cheating, plagiarism. If that is the case than his academic future regarding transferring becomes a bigger issue.