Agreed. I have no problem with what he did, or with him being given a day or two off. How is kicking dirt different from throwing dirt? If someone throws dirt onto an umpire, there is no question he would be suspended.
I'm pretty sure the rule is that the runners can tag and advance as soon as the OF touches the ball, not catch it. This was put in place to stop exactly what you are talking about from happening. I could be wrong though and I'm sure someone else here will know for sure. You are correct. Initial contact by an OF is when the runners can go.