If he had kept the fins on, the rocket may well have gone significantly higher. Instability probably helped to keep the altitude low. It's a high drag item in any event, though.
I don't understand the deal with the chute either. For one thing, 36" seems to be awfully large for something with an empty weight of probably a few ounces. That's excess weight that wasn't needed. On the other hand, a little bit of weight in the nose could help to lengthen the coast before apogee. Second, the parachute might have deployed if the rocket had a design that facilitated drag separation, which this one didn't. Otherwise, it would have needed a pressure-initiated spring system to pop the two sections apart and expose the chute.
I think they traded performance for simplicity, creating a design that could be outlined in just a few pages in a magazine. Nothing wrong with that; he got results that were commensurate with the effort and expense. This could provide some funtime backyard launching without drawing complaints from the neighbors.