Yes - ironically his call of our hero's all-in was a better bet than his call of SB's original flop bet.

Really what the villain should be considering here is how many of his outs might be dirty, because *that* factor alone makes his all-in call -EV in this instance. SB showed strength with his flop bet, and hero is showing considerable strength pushing over the top, so villain has to at least understand that Axd, two pair, or a set are all potentially out there and could fill up on the turn or river. He could even be drawing pretty much dead (only runner runner kings would give him the absolute nuts against any possible hand). That's why villain's play was poor.