Why does the binding of DMSO to metal via the S atom (k-S) strengthen the S=O bond?
The confusion seems to arise from the incorrect statement that the S-O bond has pi character and that there exist $\pi$ and $\pi^*$ molecular orbitals in DMSO. Instead, DMSO (despite the way it is often drawn) is most accurately depicted as having three single bonds and one lone pair on the the S atom (clearly visible as a dominant element in the HOMO shown in the question). The trigonal pyramidal geometry (also shown in the question) is consistent with this description.
The S-O bond is a dative bond, meaning that the S atom provides both electrons rather than having one electron come from each atom. That results in a formal positive charge on S and negative charge on the O. The O therefore is best represented as having one bond (to S) and three lone pairs, similar to the oxygen atom in an alkoxide ion. Because of the charge separation, the S-O bond also has a strong ionic component.
[Aside: so-called hypervalent sulfur compounds are typically drawn with double bonds that are actually combined sigma + ionic bonds rather than sigma + pi bonds. DMSO is not the only one. Keep this in mind in the future when trying to understand properties of sulfur-containing molecules.]
We now consider what happens when DMSO interacts with a transition metal. Similar to the O of an alkoxide ion, the O atom in DMSO can interact with metals as both a $\sigma$ and $\pi$ donor because of the multiple lone pairs. Both the $\sigma$ and $\pi$ donations result in decreased electron density on O, reducing its charge and weakening the S+/O- ionic interaction. The weaker ionic interaction means that the bond overall weakens, consistent with the decrease in the observed stretching frequency. There is no need for an S-O $\pi$ interaction to exist in order for this to happen.
If instead the S atom interacts with the metal, it does so primarily as a $\sigma$ donor via its one lone pair. There may be capacity for a $\pi$ acceptor interaction with $\sigma^*$ orbitals, as has been proposed for ligands such as triphenylphosphine, but if this occurs, it is with the $\sigma^*$ orbital associated with the S-C bonds, not the S-O bond, consistent with the LUMO shown in the question, which has a large contribution from the py orbital on S (ie the p orbital in the plane of the C atoms). Thus there is no weakening of the S-O $\sigma$ interaction due to $\pi$ acceptance.
As long as the $\sigma$ donation is stronger than the $\pi$ acceptance (which is what we expect), there is a net loss of electron density from S, which further increases the positive charge on the already electron deficient S atom. Increased charge means an increased strength in the ionic S+/O- interaction, so the S-O bond overall is stronger, consistent with the observed increase in the S-O stretching frequency.