Rick,
your reading too much into this. This concept has been around for at least 18 years.
NFHS rule 4-3-1 implies there is a sideline plane on loose ball type plays. Couple that with when the ball is declared to be dead and you either have the kick that put the ball OOB or you have the receiver that put the ball OOB.
If the player put the ball OOB, then no foul on K, spot the ball at the foremost point of the ball, else apply the penalties for a free kick OOB using the spot where the ball crossed the sideline plane.
A pass or kick receiver who is inbounds can most certainly reach across the sideline plane and grab a ball. The ball is not blown dead because that receiver is not OOB, so neither is the ball.
I sure hope you commissioner doesn't rule any other way as he would be wrong.
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