Cutting from other thread.
There could be too many ways to abuse this rule. Let's say a competitor gets a pure corner twist OLL. He "accidentally" twists one corner, the judge isn't paying attention, and the puzzle is considered solved, even though he had a good amount of moves left to do. So while I think it's good in theory, there are ways to cheat using this rule.
You will never get a corner twist OLL with only one corner twisted. If you do because of some weird non-3x3 parity, and do the corner twist, then you'll solve the cube to an impossible state where there are two pieces switched. And say you just turn one corner with a normal OLL in order to skip OLL and end up with a twisted corner. If you perform a corner twist in a supposed attempt to fix the cube, and then still end up with a twisted corner, then this case can be dismissed as DNF. Intentional corner twists are very visible. I also find it likely that you'll end up with an impossible PLL in doing this, thus having to do an OLL first anyway.
Consider this. A competitor does a BLD solve and finishes with a single twisted corner. If a corner twist is now a +2, there are now 8 states the puzzle can be in to be considered solved for 3x3, 4x4, and 5x5. I don't think this is very fair since a competitor could still solve the puzzle 'incorrectly' and still end up with a time + a penalty instead of a DNF. I wasn't sure if you meant this would be +2 for all events or just sighted ones, but you didn't specify so I felt this was worth bringing up anyway.
A corner twist is neither the cuber's fault, nor detectable in BLD, nor a possible state. If a corner twist occurs, it is obviously an accident. In normal non-BLD solving, cubers are allowed to twist the corners back before stopping the timer, and they get a valid solve. And because twisting the corner back only take about 0.5 sec, it actually shouldn't have a penalty of any kind (at most +2, if you wanna be uptight about it), especially for BLD solvers. Even when solving the cube correctly, a corner twist can occur. The cuber did nothing wrong.
Going on that line of thinking, if a corner twist is found in normal solving, it shouldn't be counted against the cuber as a DNF. Think about this, one cuber sees the twisted corner, twists it back, and gets a valid solve, while another cuber gets a corner twist on a corner he doesn't see and suddenly he gets DNF because the corner-twist (not his fault) happened somewhere else.
Corner twists are a fact of cubing life, and they are also an impossible state that is obviously an accident, not a mistake (or it's the scrambler's fault). It doesn't and shouldn't count as solving "wrong". I think that regulation 5b5d should be changed to read "If
two or more parts with more than one coloured face is affected, the puzzle is considered unsolved (DNF)" instead of "one or more parts".