Yep. First decision was wrong but I can at least understand what the other side of it was and it might not have mattered.
The second decision was idiotic. It basically made the game that one play when you didn't need to. You could go 2nd and 1 pass, 3rd and 1 pass, 4th and 1 kick the FG if you needed to and the game still be alive. What you could not do under any circumstances is call time out.
They'd have even been better if they were going to try the sneak rushing back to lineup, keep the timeout, snap it and chuck it oob then kick.
The one thing you could not do there was use your time out. Once you did it was game over.