Steve,
Since there is no accepted definition of restoration - and if there is one, it probably is less strict than what most here would propose, I doubt that any ethical lines were clearly crossed.
I have only done a few restorations, and even going into it with the best of intents, there will always be some value judgements, and every one on the committee, including the gca may have different values.
Or, the same general goal other than a particular hole that really, really gives them trouble, and then they decide that design is "no good." And, it may not be, so someone with persuasive skills convinces everyone that one hole changing is still a sympathetic change, and its still a restoration. It probably is.
But what about when the second, or third, or fourth hole gets changed. Sometimes, the philosophy of what was sold gets changed mid stream because who can resist improving a golf course when given a chance?
I agree with Tom - more gca's sell restorations than actually do them, at least by the strictest definition of the word. But most members don't really seem to care - they want improved playing conditions more than anything, holes they don't play well (or that by general agreement don't play well any more) fixed, maybe more length, etc. Generally, they want the course to look approximately the way it always has, rather than add waterfalls, etc., They are worried more about details than the big picture - i.e. "That cart path is too close in play".
I don't think those successful business people who are club members have the time or even inclination in the vast majority of cases to study and know what a restoration is. For that matter, they may with some justification want it restored to their idealized vision of what it was rather than what it truly was. (think of the howls of enlarging greens back to their former size on a course that is not short and sporty)