I think you have made two very good points arguing against point one. However yes the rules around involvement with betting companies is black and white his involvement as a customer is not against those black and white rules. Should it be? Yeah, for a whole list of reasons including those you bring up, but it is not. Would I be fine if they tightened up those rules and ultimately dismissed him? Yes. But again he has not breached the current rules. However I don't believe they can dismiss him without tightening up the rules and even then I'm not sure they could as he is reportedly no longer breaching them. The only possible breach as it stands is a catch all of bringing the game into disrepute but in my experience contracts don't have such wide, vague statements.
I don't believe you have addressed point 2. There is no evidence of his integrity as a referee being breached.