Sure, the Dane crashed out Tanfield but that was after the race was over. Unlike many folk (who haven’t raced bikes), I am a bit less concerned about crashes.
Lovely use of the technicality. Madsen was a jerk for riding into Tanfield, and was even more of a jerk for behaving like a twat afterwards. He should be sanctioned. I have no problem with the rest of the team (with their 5th man) continuing in the competition nor would I have a problem with GB contesting the wooden spoon, though if the Danes get to ride for the Gold, GB have qualified to ride for the Bronze even if they have no hope without Clancy.
However, the UCI have failed on several levels here. The GB team should have been flagged when Tanfield went off the back to warn both GB and Denmark that the team was split. There should also have been a noise signal as Denmark approached Tanfield that the Danes had caught GB and the race was over - though that does not absolve Madsen of responsibility for looking where he's going. The UCI also failed to appropriately sanction Denmark for their (very clever) use of tape and aero undershirts in earlier rounds. The fact that Denmark had incorrectly received approval for those measures just makes the UCI look even more stupid.
But, hey, I don't race. So I can't possibly have any sense of the rules, or what's right and wrong.