I did not read all of the responses.
However, I don't think this is that big of a deal. Unfortunately, teachers are often limited by how they can discipline their students. "Time out" from recess can easily backfire, and the child will have even more pent up energy once they get back inside the classroom.
Kids run around like maniacs at recess. At least, they do around here.
I think letting them (or making them, in this case), at least lets them get some of that energy out, rather than having to sit inside the building, or on a bench watching the other children have fun.
A quick side note: in the district where I taught, we had a lot of discipline problems, and things like a time out, call to the parents, or even suspensions did not work. If a class was really being ridiculously off the wall (and trust me, often there as nothing the teacher could do), the principal (an ex Olympic athlete that is the female counterpart to Lazytown's "Sporticus" in real life!) would make the class go outside and run two laps around the building. They loved it, which would make me question it as a form of discipline, but after getting a little drink of water, they were, admitedly, always ready to sit back down and get to work.