Louisville did not withdraw offers. This is a disappointment to fans who follow ky high school basketball.
Most schools do not withdraw offers in these situations, but do explain the reality of situations.
Regarding Clair Watkins, she was told that due to the recruitment of players like Amber Henson and Elizabeth Williams, it was very likely that she would not play very much, if at all. The scholarship was still going to be honored (Watkins' father first claimed to the media that the scholarship was withdrawn, but later admitted that it had not been).
The truth is that recruiting over players happens quite a bit, especially when early commitments are made. Watkins ended up at Vanderbilt, a fine academic institution with a good tradition in women's basketball. And, personally, I would rather the coaches be up front about playing time than have Watkins come to Duke, discover that she would not be playing, then have to transfer to another school.
If she simply wanted a Duke degree and basketball was the means to get that degree, then she might have stayed committed to Duke. But if she actually wanted to play and be a regular contributor (or even a starter), that would not have happened at Duke.
But this is the ugly side of the recruiting "business," where student-athletes are, in a way, commodified (and the "athlete" becomes more important than the "student"). And the coaches and institutions rarely emerge unscathed or looking good.