10.5 says "Examples of unsafe gun handling include, but are not limited to:" so a competitor's actions don't have to precisely match any of the examples to be considered unsafe.
Based on the information as presented I would say the competitor's actions fall into that category. He pointed a loaded gun down-range knowing there were people there. The fact that he didn't point the gun directly at anyone doesn't change that.
If this was a new guy who was just trying to do what the RO told him then he learned a valuable lesson. I feel bad for him but that's not a reason to ignore basic safety protocols.
As for the RO walking in front of the gun, needless to say he messed up big time. If the competitor was paying attention he should have been able to see what was coming and turn the gun to a safe direction. He would still be DQ'd for pointing the gun down-range but it would have prevented something that could have resulted in tragedy.