I'm not very informed, but I heard about it.
If this sort of strategy has precedence, and the teams involved thus had some expectation of being allowed to use it -- OR -- if the ruling is a somewhat subjective call (i.e., specific behaviors that so seriously violate the spirit of the game are not clearly defined in the rules), then immediate banishment seems somewhat harsh.
On the other hand, if my teammates and I were in the competition, and (by virtue of how the matches are set up) we could not gain a similar opportunity -- or worse, we end up playing more of the better teams, while those who employ the strategy play more of the weaker teams -- then my perspective toward appropriate punishment would probably be different.
It must be a crushing experience, for any Olympian to be sent home after so much preparation and hope, but even more so if those involved do not fully understand why. I'm confident that the sport will examine how they match up the teams.
I do love watching the Games. The white-water kayaking course made for some great competition. I enjoy the volleyball and gymnastics, too. Oh, and I saw an awesome wrestling move (was it judo wrestling, perhaps?) where an athlete while lying on his back twirled with his legs the opponent into position where he was able to fling the opponent to the mat and rotate onto him for a pin.