I've filed 3 reports with KSHSAA over my 11 years officiating wrestling. One was for some unnecessary verbal abuse by a coach (at a flippin JV tourney!) and the other two were to report what I thought was unethically using the injury timeouts. As an official, all you can do is grant the timeout and file a report if you think it was unethical. I don't know what ever came of those two situations, but at least I did what I could do.
Bottom line - like a lot of other rules, it sucks. Rules are rules and all we can do is make sure they are applied correctly. The ethics and morality are left up to the coach and wrestler.