It behooves coaches to seek guidance, permission, understanding, whatever you want to call it from their governing body BEFORE they make decisions such as this instead of throwing it out there for the game officials to have to deal with.
Was the opposing AD being a _____ (fill in your favorite adjective here) ? Most definitely. But the officials are placed in a bad spot. Sure, the crew can "cowboy up" and say "no, we are not going to assess the foul and penalty here tonight". Then they are placed in the position of not following policy/rule/procedure and now their administration is placed in a bad position to make a decision they probably don't want to make either.
A simple phone call to the state office stops the train wreck. I admire the team and their stance. I deplore their coach's decision to not be an adult and do the job which he was hired to do, which is to administer his program in all its facets.