From what I gather, this was the first meetup being organized, and the first meeting was in part to promote a product. This should raise red flags. Otherwise, it becomes a wonderfully cheap spam vector. (Meetup sends noticed to users when local grous are added that users say they are interested in).
As a user of Meetup.org, I'm find with this level of oversight. As long as he can go about getting the meeting reestablished, I see no harm being done, and everything working appropriately.