According to what I read yesterday, it is the FIRE Inspectors Job to hold a flame up to the wall for an x amount of seconds. It is one of the things they are required to do in order for it to pass. I will find you that link....
First of all I believe if there is a question then a match has to be held up to the wall and second like I said maybe the club owners told them the foam was not flammable.
All your points are moot anyway because the club and band didn't ask for a permit for pyro's.