It seems to me that bean bagging this spot is reinforcing to everyone that the player stepped out of bounds. Also, most of the time a player merely steps on the sideline while running (rather than running OB and returning down the field).
This spot gives us somewhere to throw the flag if it is a pass or if we decide he "participated" in the play if we do allow ourselves some judgement on those passes to the other side of the field.
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Stripes1977
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