I can speak from the perspective of having worked for a company that produces races and has tried out both transfers and deferrals. There are a lot of not-so-obvious factors at play when you offer these services. For our biggest race, a marathon with 3600 entrants we used to allow transfers. This was 5+ years ago so maybe it's time for us to explore transfers again. We found about 8% of the entrants posted that they had a bib available. It was a ton of work for our Registration Director. We did charge $20 to complete a transfer, all of which was donated to a local youth running charity. Because of the extra work involved our Registration Director convinced us to look into doing it differently. We're all part-timers or volunteers here (it's a not-for-profit company) so when a key staff member says something is too much work you can either listen to them or find someone new. It's easier to listen.
One thing we also saw is that no matter how far backwards we bent to accomodate people it was perceived as never good enough. We had a transfer deadline 3 weeks out (in order to set the chip database, I know you can do that closer to raceday now) and inevitably we'd have people contact us after transfers were over asking to make an exception.
Another thing, despite the $20 transfer fee (entry fee was about $60 back then) and the fact that all proceeds went to charity, a lot of those who wanted a transfer thought the price was too high. What we heard a lot was "My buddy already paid for the race, why do I have to pay again?"
About 5 years ago we went to allowing deferrals only. If you enter and can't run for any reason we'll give you a discounted entry the next year, you pay about half price. Same as with transfers, we need to be informed you want a deferral about 2-3 weeks before the race. When we went to deferrals only the complaints dropped down to about zero. We still hear that we need to know too early, and we hear that half price is too much to pay, but I would say complaints are down over 90%.
In the specific case of Cowtown, all you can say to the guy who crossed the line first is "what were you thinking?!?" If you're a good enough runner to finish first in a race then you should know better. I don't understand where lack of respect for the race organizers on any level is okay. They don't allow transfers and you want a transfer - too bad! Work it out ahead of time with the RD or go elsewhere. Entry fee is too high, contact the RD. Anyone who contacts me and says one of my races costs too much I'll give them a volunteer job and they can earn their entry fee.
Or you can just play it like the world owes you something and do whatever you want.
By the way, the same thing happened this weekend at the American Birkebeiner, the most presitigous XC Ski race in the USA:
http://fasterskier.com/2012/02/dubay-discusses-mistake-birkie-dq/