The US had no procedural route to get Balogun reinstated. That doesn't mean FIFA can't wave their magic wand to make it happen.
Had FIFA implemented an appeals panel for the tournament, it would've looked at the incident, deemed it a misapplication of VAR and a wrongful red card, and the world would've moved on. Instead because of their incompetence, the only remedy was via their magic wand, which is arbitrary and capricious.
Hence: “which in practice will be arbitrary.”
It’s on FIFA to correct for that governance failure by making it less arbitrary via a more universal appeals process.
In any case, the rules were followed to the correct decision. It’s just that these rules as written are arbitrarily applied.