Re: I find the argument bizarre
There are only just two approaches if you live in a black and white world where everything has to go to the letter and nobody is capable of making a judgment call. You are suggesting two systems in which common sense does not apply. I'd rather live in neither of those, but in one where common sense is applied.
In a lot of places something which clearly goes against the intention (though not the letter) of a law is still illegal. So you can strike a balance 'What isn't allowed by the law is forbidden, anything which clearly goes against the intent of the law also is forbidden, everything else is allowed'. In this case, if the intention of a set of rules is to create a work environment where people feel save and you do something which clearly makes people feel unsafe, even though not specifically forbidden, it can still be a violation.
Also, the potential abuse is why 'those in power' should not be the same people as those making judgments. It's called 'Separation of powers'. Now in corporate environments this separation rarely exists, and I don't see it in this case either. Usually there is just one 'power', called money. (For an other example, see what happens if the president gets to appoint the head of the FCC...)