No, you're not getting the point. It's not about what UPS thinks after it's late or about anything that has to do with refunds or whatever.
It's about the CUSTOMER. What if you were a customer anxiously awaiting an urgent NDA that is supposed to be delivered by 10:30. You are waiting and waiting. 11am goes by. 12pm, 1pm, 3pm...and your day could now be blown based around a package that was important to your whole day.
Always get to a 10:30 commit NDA stop as soon as possible after it's late. Not technically a rule but the absolute right thing to do. Otherwise, they go with FedEx next time.