I’m not in favor of anyone getting around rules and definitely not in favor of “development admission”, as you describe it. I think admissions should be based on straight up merit, and I’m not a fan of the wishy washy “holistic” review.
That said, I am trying to withhold judgment about this particular scenario until more facts come to light to suggest that this letter made any particular difference with regard to the student in question. I guess I also want some more information about the whole incident in general before making a full-on condemnation.