Post this issue at poker forum and it will be resolved who was correct
Ps: I have no steak, but as for small blind exception - maybe because that means no other cards has been dealt so it is easy to cancel the whole dealing and start from scratch, while if some cards are already correctly dealt it is not so "cool" to take back those cards and maybe anger the players who were happy with what they already been dealt.
Ahgain, just a random thought, not claiming anything.