I fail to see why the writing set out above does not meet the requirement for level 2. Here are the statutory level descriptors (with plenty of reference to punctuation):
Level 1 Pupils? writing communicates meaning through simple words and phrases. In their reading or their writing, pupils begin to show awareness of how full stops are used. Letters are usually clearly shaped and correctly orientated.
Level 2 Pupils? writing communicates meaning in both narrative and non-narrative forms, using appropriate and interesting vocabulary, and showing some awareness of the reader. Ideas are developed in a sequence of sentences, sometimes demarcated by capital letters and full stops. Simple, monosyllabic words are usually spelt correctly, and where there are inaccuracies the alternative is phonetically plausible. In handwriting, letters are accurately formed and consistent in size.
Level 3 Pupils? writing is often organised, imaginative and clear. The main features of different forms of texts are used appropriately, beginning to be adapted to different readers. Sequences of sentences extend ideas logically and words are chosen for variety and interest. The basic grammatical structure of sentences is usually correct. Spelling is usually accurate, including that of common, polysyllabic words. Punctuation to mark sentences ? full stops, capital letters and question marks ? is used accurately. Handwriting is joined and legible.
Here is a link to the relevant APP grids:
<a class="break-all" href="http://webarchive.nationalarchives.gov.uk/20110809101133/wsassets.s3.amazonaws.com/ws/nso/pdf/ac3aec7f9a6f74cf7dffc3cbea8a9127.pdf" rel="nofollow" target="_blank">L1&2
<a class="break-all" href="http://webarchive.nationalarchives.gov.uk/20110809101133/wsassets.s3.amazonaws.com/ws/nso/pdf/a78a147abab77f7a750782a77b250372.pdf" rel="nofollow" target="_blank">L2&3.
The L2 criteria clearly state "in some forms of writing", not in most or all forms, but some.
The idea that the two examples above are only just starting to reach the requirements for L2 makes no sense to me based on the L2 descriptor and the APP grid. Of course if all of the rest of the writing available was of a significantly lower standard then I could understand that this would pull the overall level down to a 1A - but it doesn't sound like that's the case.
Here is an example from the national standards files (i.e. the official ones) of low level 2 writing. If you look at the APP grids at the end you will notice how not all of the L1 criteria are met (although most of them are) equally just over half of the L2 criteria are met. Best fit judgement in action!
The judgement for OPs DS seems beyond cautious - although perhaps not untypical.