You make fine points for your reasons for supporting the prepaids. (But you still have to remember, not all states pre-paids allow families to benefit from private colleges or out-of-state colleges! Thats a very real risk in itself.)
And the last two weeks really doesn't provide any support to a theory. In fact, if you look at tragic events throughout history, in most cases the market rebounded within weeks or months and went on to provide nice returns in less than a year later... and beyond. (If history repeats this in any way, I still don't believe that hurts your theory though, because its still too small a time frame to jude anything by.)