I doubt that there will be much movement toward Peden upgrades or expansion until it becomes more clear about any possible realignment of college football.  Then, if Ohio ends up in that new middle division between the Big Five and FCS, there will have to be decisions made about whether Peden will be a priority for spending.

Calling a finance person an architect is a felony in many states.

This picture was in an Ohio Game day program back in 2000. It shows an upper deck in expansion plans

Sometimes they will design a building such that an upper deck can sit on the roof, so the building is both a building, and the structural support for the deck.

If it were me I would demolish the main sideline section on the student side of the stadium. I would then rebuild it to where the end zone corner actually attaches to the new section. That main section seats 7500 people I think. Rebuild it to seat 10,000. That would get capacity up to 26,500. Finally close the north end and bring the seats all the way down to the field. Those seats would replace the tent. I am guessing that would get capacity somewhere between 30,000-32,000. As far as I am concerned that would be plenty of permanent seats. Keep the hill for overflow.

By taking that main section on student side to 10,000 you could increase the ability of the stadium to hold noise which would improve home filed advantage. It would also provide a space to build club seating.

The students are paying thousands every year in tuition. I will gladly pay $98 for my season tickets this year over the couple thousand I paid last year in tuition to get me my free ticket. Like you said, why not upgrade where the money is? When I see the student section on TV, I see thousands of dollars being sent to Ohio University.

The student section was FULL for multiple games last year. I expect the student section to be at 100% sell out capacity for every Saturday home game this year with the exception of Austin P. North Texas, Marshall, CMU and Miami, at all of those games Peden will turn away Ohio students wanting to watch Bobcat football.

Even if you don't build a new seating section for students... More space is needed there. It is packed right now beyond capacity. The hill is the perfect overflow section for students, but we are to the point where Peden needs more seats for students.

Students are not just paying tuition.  The reason tickets are free is because every student pays around $700 into a general fee (this is not included in tuition).  Said general fee pays for things like tickets.  That's why it seems like students get in for free, because that fee has already bought the tickets.  So never say students get in for free, that is a misconception (and also the main reason for the aggressive feelings towards athletics from some, students have no say in the general fee, all must pay it).

I think that would cost an awful lot of money for few seats. Why not get rid of the hill and build a grandstand end zone seats there? Put in 7000 to 10000 seats.  You save the cost of the demolition to the student side. 

Look closely and you'll also see the corner sections have been extended to the field and there is a connecting string of seats between the two half shells.