I don't really want to try and guess what decision you were reading last night. Yes I could see a number of methods where that could apply, but it really seems ridiculous to try and guess what pretense it would apply in your situation for which you have in your head and have not divulged. I usually only try an address how rules relate to a given circumstance, and not whether or not I can come up with circumstances that may apply.Rules are always subject to strange tests.
Here's something I read last night in the decisions. Let's see if any of you can answer this question: Is it ever OK to hit a moving ball (not just a wiggling ball but one moving from one place to another), and if so, when can you do this?
So yeah, just off the top of my head, a few years back a guy tee'ed off in the British Open. His ball was moving, hit another persons putter on the green and went in the hole for a hole-in-one. Probably not the circumstance that was on your mind, and the reason it seems so pointless and it really gives me no gratification to say I answered your question.
The fact that there are always strange tests that test rules but it does not excuse the fact that people in your tournament where wrong in their decision, or further excuse the fact that the USGA even has on their site that it is legal to hold the flagstick while you tap in a putt.
The problem I see here is that you are telling people information about rules that are incorrect, which is likely the same way these people who penalized you came about with their decision. On false or incorrect information. Had it not been mentioned, I could see some guy playing in a tournament and saying a guy should be subject to a penalty for holding a flag while he tapped in. To me that is just bad for the game. Just because they are always subject to strange tests does not mean they can be interpreted however the official seems fit. There are set standards for which the USGA is always happy to respond. If you believe what this guy said is true great, but you would be doing a much greater service to him and you by confirming it with the USGA prior to posting here that it is a legitimate rule.