It's probably semantics, but the rules do not say "complete control" but that the ball must be "firmly grasped" before the play can be ruled a reception. In the video example, the ball is loose within the player's arms when the nose of the ball touches the ground (it does not matter if it moves or not). Since the player does not have the ball firmly grasped when the nose of the ball touches the ground, it must be ruled incomplete.
Firmly grasped is a judgment call. Nothing says a ball that is firmly grapsed can't "move".
Whichever way it was called on the field, there was not enough video evidence to change the call. That is the problem with what Instant Replay has become. It is substituting what the replay official THINKS should have been the call rather than simply confirming or overturning obvious errors. Replay officials are the "activist judges" of the football world.
Read the philosophy of replay in the NCAA:
The instant replay process operates under
the fundamental assumption that the ruling on the field is correct. The replay official may reverse a ruling
if and only if the video evidence convinces him
beyond all doubt that the ruling was incorrect. Without such
indisputable video evidence, the replay official must allow the ruling to stand.
Somewhere along the way, that philosophy has gotten lost in the actual application.