Correct--Should read if OB....sorry that is the notion. Good catch!
DROP ZONE if you go for the island (and are OB), regardless. Once you go for the Island, after your second shot, you go to the DZ REGARDLESS of where it went OB. So if you are throwing from the Peninsula pin, and hit the basket and roll OB, you go to Drop Zone. Yes that punishes the distance, but that is what we are doing.
At this point I don't believe that this course is to be used for the competition, but......if it is altered, then we could revise the ruling.
However this has long been the model for the placement on the Island. Anything after the second throw that goes OB does go to DZ regardless of where it goes out.