Schmidt's situation is precisely why I think this should not be a penalty - C guys, in my book. I hope that's how NF would rule.
The way I read Schmidt's sitch is that the ball is going to end up on the court, but way down in the corner 30 feet from where the ball is released. Do we want B to have to toe that line until the ball crosses the plane after it is released? I think that is not what the rule envisions.
I think the rule allows B to intercept or deflect this throw if it is released toward the court. It is the only sensible way to give each team fair access to a ball that has been released by the inbounder.
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