The point is that a seat booked for extra luggage does not qualify for air miles. Whether or not that is reasonable is beside the point, those are Delta's terms and conditions. Passing the booking off as being for another person appears to be a fraudulent attempt to obtain air miles he's not entitled to, which is probably why Delta cancelled his account as well as the cello's. While you might be right legalistically, it does seem to have been a genuine oversight and Delta's response seems disproportionate, especially as he is having to pay a full fare for the cello. Cancelling the cello's airmiles would seem to be the reasonable response.
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