If MUN has to change its "brand", they should add to it rather than detract from it. Keep the acronym as MUN, but add Labrador to the name. Personally I'm happy with it is it is, but I wouldn't have a problem with being inclusive.
The other thing that bothers me is the whole brand marketing mindset. For universities in general, tradition and integrity in education are percieved as important. Also, I don't think most students are particularly interested in the logo when they are trying to decide about their school. For example, my initial decision was based on the following criteria.
First for me was opportunity .I'm not from a rich family and I paid my way through school with jobs and scholarships; MUN was inexpensive and I could live at home. I was fortunate that they had a very good undergraduate Physics Program and a good Math program, and some great Oceanographers to help with my Masters degree.
Second was the percieved quality of the department. Much of this is usually word of mouth advertising, and unrelated to formal marketing. Basically I talked to former students about the departments and some of the professors, and which courses and programs were good.
Third was the published information, and this related to requirements, who teaches what, what you need to go on to other programs, etc.
In none of this did the logo or the name factor into the equation when I was choosing it. It was MUN, which was a convenient tag. However, when I was there for a while and learned about the history and the great departments and work that was going on, I became proud to be a student there. I have studied at Dalhousie as well, and the physics program at MUN was much more challenging and interesting.
Many of the best universities use their traditions and symbols, and that is part of the draw. This is because they have developed a solid reputation by what they have accomplished. Personally the school colours of MUN weren't aesthetically appealing to me, but I grew to identify with them. A coat of arms is a good tradition and a fine logo for a university. MUN has been doing this well over the past few decades, and is in a good position to incorporate this reputation into their brand, if they insist on marketing MUN-cola.
I also agree with others about the banality of the logo. It almost looks like a bloody rag.