Good post for discussion...
Although the video from a distance is hard for me to see elbows thrown...I agree with doug747...there are certain positions where a wrestler cannot improve. He is stuck. Like this position in the video. The bottom man cannot improve. From an official's point of view, as long as he "attempting" to improve then he should not be penalized.
Ball and Chain comes to mind as well. If he is not turned soon by the top man, it should go to stalemate, just like what I see in the video.