Substitute or suffer penalties?

[jasmunich]

I heard of the most bizarre situation and wanted to get additional opinions:

A coach has a few potential subs warm up on the sidelines during a high school game. After the "subs" have warmed up, they go and stand near the coach. The ball goes out of play. The coach makes no indication whatsoever to the ref that he wishes to sub. The ref, however, misconstrues the mere presence of the players on the sidelines as a desire on the part of the coach to substitute the players. The ref stops play and asks the coach whether he indeed intends to sub. The coach politely declines. The ref cautions the coach that according to state rules, he HAS to sub, and offers him the "lesser penalty" of a yellow card if he will only go ahead and sub. Further, the ref says that if the coach refuses to sub, he will stop the game. The coach declines and calls the decision "ridiculous". The ref red-cards the coach and stops the game. The coach is fined.

I have never on God's green earth heard of such a surreal situation. Have 'non-FIFA' rules and regulations become so numerous and draconian that officials spend more time punishing off the field than managing the flow of the game on the field? Any thoughts?