As I'm clearly in the minority, I voted to keep the penalty in play. However, I'm in agreement with the several commentators calling for a "compromise" penalty of some points (specifically accumulating after today).
There absolutely should be some sort of penalty for missing a clearly stated deadline ... especially if he isn't getting them in until Thursday morning. As others have stated, what's the point in having a deadline ... and if this owner gets off penalty free this time ... how can you enforce any future deadlines?
Frankly, I'm assuming this guy already paid for his gift certificate. If he wants to pull his teams ... let him. I'd be willing to bet you could get another owner quickly if you offered them his gift certificate.