Unstabilised approaches that are continued to a landing are very seriously looked at in my last 2 airlines and in case of a recurrence happening, a clear sanction.
I find odd that an experienced fo gets unstabilised because of selecting flaps 40....unless they selected flaps at max speed and used them as speed brakes.
Taking controls at low levels is possible(in case of pilot struggling with the flare..) but if the aircraft is outside or very close to be outside of stabilised criteria then a go around is the safest action...if obviously those pilots are confident/trained well in conducting balked landings...
On that note,such maneuvers are rarely trained in the sim and every day goes by another incident is waiting to happen where people feel "safer" on the ground than going around..