If I was to do a loop in my plane at 2700ft knowing that the safe distance to do one was at 4000ft, I think I would be negligent. No?
True, but has anyone said it is impossible to do a loop at that height? Not defending him at all but if a pilot has done loops at that altitude before he might think he can manage it again. A comparison might be driving on a road. The recognized safe distance on a motorway is 2 seconds in the dry but if you're on the M25 you'd be hard pressed to find anyone anywhere near that distance.