This is the same advice I would have. If the fire is near where he was wanting to hunt, return the tag and get points back. Even if they manage to put it out before the snow starts falling, it has already changed the area for the worst, will take a bit for the animals to get back to normal. Sadly hunting success is very dependent on factors outside of the hunters control. I have also tried to hunt near a fire that was put out before the season...iit was a few miles away where it was burning, but there was no sign of the deer and elk that used to be in the area.
If he is on the fence, and it sounds like he is, I would return it and hope for something better next season. Unless he can get up there in a different area to scout things out and see if its worth his time, but remember that the fire will also concentrate other hunters to the same areas he is looking at.