My guess is that these kids had no respect, were pissing on and around the toilet, and were probably laughing about it when the teacher caught them. They probably thought it was too funny until they were caught and held accountable.
That's the problem with the education system these days - people are too afraid to hold students accountable for their misbehavior, lest parent groups get angry and protest.
I think the teacher took the right action, unless the reaction was stronger than what was reported.
I would have got back to you sooner but for some reason I had to run to the bathroom. I'm guessing it was more than just a routine sniff. I can't see myself protesting over a sniff. Then again some people are overly sensitive.