Option parsing stops at the first non-option. "--keyserver" and "sec1...." could have also been key specifications.
Because sometimes people make errors we print a warning. But we can't bail out on a perfectly valid command line. That is the same why

rm -rf * ~

does what it says and not just removes the backup files.

I am sorry about your problem, but with a public key anyone at your site could have fetched the key as well and distributed it worldwide.

gpg: Note: '--keyserver' is not considered an option

This states that GnuPG recognizes this was likely meant as an option and that the user likely made a mistake. It makes no sense to recognize something is wrong and then bulldoze through it. I understand not wanting to bail out on a "perfectly valid command line", but in interactive usage, you could at least give the user 5 seconds to press Ctrl+C then instead. The code already knows the user most likely made a mistake. Especially because this is security software, giving the user some way to recover when you can tell something is a mistake seems sensible.

A few people asked for this generic option help; it is not specific to keyservers. Now we implemented that and still not okay for everyone, oh dear.

#insert <standard-unix-is-friendly-but-disclaimer>