I think that's right. We could get into all sorts of linguistic tussles over the exact denotation of "fair," but I've never seen one of those go well on this site, so I'll beg (and plead) that we not do that. The issue, I take it, is that
Oofta's wife was put at a severe and unnecessary disadvantage right from before the game even began: a lot of people won't even want to play under those circumstances.
So let's just forget "fair" or "unfair" momentarily and instead talk about "kind" or "unkind." The DM's response was surely unkind.