It seems clear that few, if any, people think it is appropriate for ATC to make a Captain's decisions for him/her. However a system whereby ATC 'note' for future investigation/explanation any gross abuse of the rules such as seems to have occurred here surely ought to be in place?
Suppose this plane had managed to make it in on its 3rd approach, would any action have been taken? Or would these pilots have been left to do the same thing the next time they ran into bad weather?