I agree DSHS overstepped their bounds, they ALWAYS do. And I absolutely don't know why more people aren't aware that each state's DSHS rules do not give family placement any priority. Some states actually give placement with a foster family priority over a family member, including the non custodial parent.
It would be nice if someone can sue DSHS in one of these cases, but there are no guarantees even on a federal level. On the federal level non custodial parents have not been given the same standing as custodial parents, and I absolutely agree that it is wrong.
In this case, the foster parents have lots of money and they threw it at him, and he took the deal.