I'd suggest it would have been irresponsible on the part of the rescue to back down, especially after Ellen had her public bawl-a-thon on national TV. If they had let the family keep the dog, the result would likely be many more people deciding on their own who they can give their own pet to. Placing pets properly requires careful consideration and should be undertaken by people who are trained -- not just anyone who thinks they know what they're doing. The rules are there to protect both the pet, and the new adopters.