Your analysis is WRONG!!!!!!!!!!!!!!!!!!!!!!!!!!

He is h1 though AOS, because he did NOT use EAD. His wife can still apply H4 no matter she applied AOS or NOT. If already applied AOS, once she left USA without AP, her AOS already void. But she can still come back using H4 and applying AOS again.

However, if the hu*****and already used EAD, the wife cannot come back using H4. She can only wait outside to get the immigration visa once the hu*****and's I485 approved.