Huddling Prior to a Free Throw

[Refhoop]

Last night's scrimmage, we had a coach claim: "15 years, I've never heard players can't huddle..."
Post scrimmage: I found the rule and showed it to him, just to confirm that most coaches don't read rule books... JK.
Regarding "allowing the game to develop into an actionless contest". (I take this to mean an unsportsmanlike delay of game)
Rule 10-1-5 d:"Contact with the free thrower or a huddle of two or more players in the lane by either team prior to a free throw following any team warning for delay."

1. Wasn't this a POE a few years back?
2. Do you all have this as an issue in your areas, if so how do you handle it?
3. Would a correct interpretation of this rule be: Huddle if you dare; but if you get a warning for huddling or any other warning: your next huddle will cost you a "T".

Also, why is contact with the free thrower in there?