I'll give you my answer.
I was appalled by the video clip and was quick to react to the image of two teams standing in place and tapping a ball to each other for two minutes. Reading GKdad's first hand account which stated that the game started out with some probing attacks and runs and then devolved into what was shown on the clip when both teams realized there was going to be no pressure put in their defensive half, softened me a bit. We all can be guilty of overreacting to 90 seconds of video out of context. But even if the entire game was "played" like the video clip, I don't think USYS should take aggressive action or sanction/suspend people over it because, as you said, no rules were broken. Sanctioning and suspending for violating the "spirit" of the game is not something an administrative body wants to get into. So you're right . . . in a lawyerly kind of way (sounds like that may even be your line of work, no?), but that doesn't mean that we can't all learn from this and make it a teachable moment. It was a terrible look for both coaches, at the very least. I think most of us would not have been really proud to walk off the field that day if we had been participants. My reaction to the video was not a legal/rules disagreement, but rather feeling like the coaches robbed their players of the dignity that every competitor feels when they walk off the field having given their all to the game win or lose. It ceases to be a "game" when there is no risk involved. And games are supposed to be fun. That goes for every level of sport all the way to professional. If there is no risk, there is no game, if it isn't a game, what is the damn point? A trophy for the sake of a trophy? I think the coaches involved could benefit from some soul-searching. In retrospect, could they have achieved their goal and still honored the spirit of the game? I think so, because I've seen other coaches do it. My daughter's coach did it and many of the posters here have told stories where their team was in a similar situation and a competitive game was still held. Nobody needs to be drawn and quartered over this, but I wouldn't have been proud to be a part of that spectacle. And I don't think anyone should bash the kids over this. They aren't to blame.