SItuational Awareness/ Airmanship
Few words describe this incident for the landing B737, lack of situational awareness/Airmanship. Listening on the radio and looking out the window, the Captain would have been aware of the highly dynamic situation at play.
Seeing an aircraft stopped on the runway doesnt need ATC to tell you to Go-Around. The ATC instruction should have been the last resort and it was still disregarded. Both approaches are over water, there are no terrain considerations, the missed approach will keep aircraft low (1500') due to the nearby American airbase.