There's nothing wrong with recolouring heads as long as he's using it as a custom on Classic or Era and he's not claiming it as his own. It's also a global head image, so it's not like he's recolouring someone's work.
Off-topic, but why do people refer to the full head files as templates?
A definition of a template to me is a setting to start a work on something. As he wanted that specific head for a custom with a legal face covering. Not everyone has enough *skill* to do everything from scratch so nothing to hate on.