I believe that the majority of what we have heard about the "hazing" is probably true. I would take a middle ground, leaning more towards mostly true than mostly made up on this stuff. Quite possible there was some embellishment, but I believe for the most part a lot of this had been happening for a long time there.
I also think that Fitz knew - at least knew there were hazing scenarios going on, maybe didn't know the "details", but even then I bet he knew more than he would ever admit. If there were actually dryboards in the locker room with names and different hazing items on it, no way Fitz or other coaches didn't know about it.
For the record, I never saw anything like this at UNL. My frosh year of high school the seniors tried to haze us. It had rained and there was a big mud puddle - probaby 20 feet by 20 feet - full of water/mud. The seniors broke some glass bottles and threw the shards into the mud puddles then told the freshmen we had to run full speed towards it and slide through it. I refused, and was willing to throw punches if needed. Some other freshman did not refuse and bowed to the pressure. A couple of them had pretty good cuts on their legs from the glass, one kid had to get stitches.
I had some asshole coaches my first couple of years in high school who allowed and supported this stuff. Similar hazing stuff happened for basketball, which I again refused to do. A couple of the seniors in the basketball team stood up for me and even went to the head coach. The coaches were the same for basketball and football, just flip flopped who was the head coach and who was the assistant. The coaches weren't going to do anything about the hazing, but those two seniors who stood up for me, then other frosh, told the coaches they would quit if they didn't put a stop to it. So the coaches reluctantly told the upperclassmen no more hazing.