I don't see any issue in doing what they proposed. Websites ranking merely because they have an exact match domain, was ridiculous.
However, the reality is, they're penalising websites for having an EMD, even when the quality of the website is great.
It appears the site in my circle that was hit, has suffered a -10 penalty for the exact match keyword. Even though it was without a doubt the best result for the keyword search.
In this particular niche, there is now no domains, that contain the term, on the first page. I think highly profitable, competitive niches are coming under extra scrutiny.