Technically... no, characters aren't supposed to do those things. Holding children is a safety issue, and sitting, laying on the ground, putting knee down isn't good on the costumes. BUT like someone else mentioned, characters will risk things because it makes for better character interactions- and for the most part, they won't get in trouble. There is a little bit of a double standard- as you might find in other jobs. If you're a good cast member (or employee), you work hard, and never give them any issues, a boss/manager/whatever is more willing to look the other way when you bend the rules slightly. However, if you've consistently called in, been lazy at work, or been a general pain in their side, you better believe they'll get ya when they can. This guy obviously felt like he was above all the rules from the get go, and in the end, it got him. I don't feel sorry for him one bit. He asked for it! Disney's rules are strict, but that's real life- too many people are just plain lazy. You might not always agree with them, but you just have to suck it up, and stay on the good side so you'll be ok when you slightly bend the rules.
As for the point system- you have to work pretty hard to get fired for points. I've worked there for about a year and a half (granted, the greater part of that has been on a seasonal status), and over that time I think I only had about 2 or 3 points. I clocked in a little early a few times, and then I called in a personal day once. And now, all of those points have been wiped off my record. Show up to work, on time, and you'll be fine.
So basically, I have no sympathy for him. :shrug: