Agreed, as I said earlier, the candidates primary failure there was accepting what he considered an unsafe instruction. That alone fails him on PIC decission making ability and indicates that his natural tendencies may allow for him to be a victim of "get there itis" in the future. I've often flown with newer pilots and talked them into something hazardous, then stopped them after they began the process, "Do you really think that that is a good idea to do?" "No, not really, makes me nervous", "Then why did you let me talk you into it? Part of the "Command" in Pilot In Command is know when to tell whomever it is regardless the consequences, "No, that isn't going to happen".
Never let someone talk you into something you don't like. His busting altitude was actually a secondary failure at best.