I've both worked races, and run in them, so I've seen both perspectives. When something like this happens during a race (and it can happen despite taking reasonable precautions against it; no system is error-proof) race officials have to just do the best they can. Maybe this one didn't make the best decision in this case, but you know, life goes on. Disappointment is an integral part of competition; we all experience failure, and sometimes that failure is due to circumstances we don't control.
As for the race director running this event--the Varmint is perhaps my favorite race, and much of the reason for that is that it's an event based upon a bit of local history and and I'm partial to events that honor their history and traditions. The race director runs this race because she and one other person has run in *each and every Varmint since its inception*, and who am I (or you!) to tell them that they should break that streak? Nor would I tell her that she should do either one or the other, I've run the past two Varmints and each one has been charming and exceptionally well-organized, so it's your experience that appears to be the exception rather than the norm.