This all sounds very sensible to me. OSU is also recruiting the younger brother (and why wouldn't they, everybody else is), so what holds true for one ("Don't practice, it isn't safe, and you're 1-7, so it isn't worth it, either") holds for the other.
As to whether OSU coach should be fired... good luck with that. He's protecting his investment, he and his management probably feel entitled to talk this way, and they don't need to make any friends in middle Tennessee. The OSU brand trumps that. If Urban sees another kid a year or two from now that he wants, he will go after that kid, and there isn't anything Webb can do about it.
By the way, there is also a younger brother in the house, a younger kid, who will be a similar prospect in a few years.