It's a short sighted way of looking at it; at least if it's a one-off. Landing accidents have always happened and always will.
A student will learn very quickly from something like this upset and will undoubtedly not do it again. A better way to deal with this is to thoroughly debrief the incident, give re-training, get the student flying again asap.The next new student who comes along to fly might do exactly the same thing in any case.
I wonder how the flying school's insurance is?