"Nothing to do with fairness, but in a close race there is a lot of luck as to where you are in the stroke when you finish"Swimmers train on this; it's harder for rowers because the longer lane and variation in wind and wave conditions make it effectively impossible to estimate the stroke phase at the finish, but rowers can and do race forward in their last stroke, just like runners can change their running style before the finish line, even in a marathon.
I also thought Damir had won, but wasn't frustrated to wait, and also wouldn't want this declared a tie. It's very unfortunate for some of the competitors, but it also is one of the things that keeps a sport interesting (yes, I'm against using video technology in soccer, too).
If they did ties, we wouldn't have had that 10 minute or so of 'nothing happens' excitement in 2000 when Ekaterina Karsten beat Rumyana Neykova by 0.01 second, but both had to wait for 5+ minutes (IIRC, the next race had finished before the jury made the call) or so before knowing that.
And yes, there likely is a larger error at the start, but that, IMO, doesn't matter much. The rowers row against each other, and I doubt even a 10 cm difference at the start would often make a difference.
Given the often varying water and wind conditions, if you really want "when we aren't 100% sure A was faster than B, declare a tie", I think one should even declare a tie if there is a meter between boats.