No, this was handled properly. Suspected illegal activity was investigated and they were quickly found to not be part of it with minimal inconvenience. I'm not sure why this is even a story. Guess what, if you are around a store that gets robbed or some other crimes the cops will investigate also.
Also, "Minimal Inconvenience" compared to what? The guy had six cops show up at his home at 6:15, barge in, intimidate him, watch as he got dressed, etc...
Yes, it's a minimal inconvenience compared to them arresting him or sending him to federal prison. And it's GREAT that somebody on-scene had the good sense to say they don't even have to seize any assets. But it's still a MASSIVE intrusion into his life, one that the Constitution exists to protect him from.
Most cops are trying to go a good job, so when an officer and a judge sign off on this kind of intrusion without better cause, it makes them all look bad, because it means they wind up hurting the community, hurting the trust between the community and the police, and wasting resources that could be spent going after actual criminals.