It's one thing to have it, it's another thing for a state university to actually celebrate it. I've got no problem with big girls organizing a pageant where they think they can compete. If it existed, I'd definitely like to compete in a basketball league where nobody's vertical is over two feet and I hope nobody would begrudge me that. But I also wouldn't expect to get honored at halftime of an MSU game for doing well in it.
But even more so if it promoted unhealthy habits. There are probably a few exceptions of girls that are actually just built big, but I would assume for the vast majority of the participants, the most important health goal they could have would be to get to where they no longer qualify to be in the event. A university shouldn't be promoting things like that.