Thank you. I think you did the right thing of taking the exact worded stance you did - if you are a middle man or not. I hope to hear your voice more often when things go astray, regardless what the others think.
People lingering, such as myself in pmdev, is messy. Putting in contracts like the one you stated, even if it affects everyone in the future, gives everyone the understanding that is their future is in their hands.
NB: When making timeout clauses, you may want to stipulate that reasonable, premeditated, communicated absenteeism may be ok depending on the time absent. 'cause you know, people get hit by trucks and what not. :)
Update: Well, jeffa is gone. Congrats.