I'm not a physicist, but when I looked into this, I found this well-written article:
The Stability of Matter: From Atoms to Stars
It goes into lots of detail of what's happening with a single hydrogen atom, then a large atom, then bulk matter. It doesn't require quantum physics knowledge from a reader, but it does require mathematical maturity, and isn't easy reading.
The short of it is that you're right, the Pauli exclusion principle is more important than electrostatic repulsion.
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I'm very much in favor of removing the Ghostbusters song from canon, and putting it in the Omakes.
I didn't understand the song (I haven't watched Ghostbusters), but I think the existence of a song itself to Harry, when he's walking down to the selector hat is a nice, funny point in the history.
That's why I think it must to be kept. It's one of those things that actually makes sense in the HPMOR world.