I excluded him because someone in my trust list has him on their trust list. To everyone else he would have been level 3, thus not in the default trust network at the default depth of 2. Being directly in default trust itself meant he was at level 2 for me, and I found his ratings to be inaccurate. And yes that's just my opinion, and it's my trust list.
Anyone can exclude someone. Someone who is in default trust is not in my trust network due to people in my trust list excluding him. Exclusions are more effective the higher up you are in someone's trust list/default trust.
Thanks BadBear and others, I never knew how to deal with the situation where someone I trusted has trusted someone that I don't trust. Now I know that I can exclude that person with "~". Wonderful.