I personally think the better call would have been potentially dangerous while he had him in the air with his only supporting point taken away by the cross arm. As it really is a potentially dangerous situation.
On the other side I see where the illegal comes in, there was no need to drive his shoulder into the midsection of the other wrestler, so maybe not an illegal slam but still could be constrewed as illegal.
Either way it's over and done with, and it was his call.