Did this cause friction on your team? Or did everyone feel good about the arrangement?
However, the people in management/business made some sweeping remarks about our team "not working as hard as the other teams" in passing. Makes me think that the further away from the code and actual productivity you are, the more important hours and arbitrary productivity measures become.
In any case, you've provided a nice example of how issues like working hours are subsumed by team dynamics. That's where action is.