Dear Mitch,
I am sorry but I still do not understand why you are expecting this to evaluate to
$\sqrt{29}$ for all
$t$. It is true that this should evaluate to
$\sqrt{29}$ if
$t$ was real, but if it wasn't it is a mistake to make that particular simplification. For example:
FullSimplify[Norm[r'[t]] /. t -> 1]
gives
$\sqrt{29}$, but if I substitute another perfectly valid number for
$t$ this expression does not evaluate to
$\sqrt{29}$:
FullSimplify[Norm[r'[t]] /. t -> I]

So if, without further information, Mathematica were to reduce the equation to
$\sqrt{29}$, that would be incorrect, because it does not hold for complex numbers in general. So I think that Mathematica does not simplify the equation in the way you wish it to do, because it would be incorrect in general. So I would think that this can definitely not be reported as broken code, but rather as expected and desired behaviour.
Or am I missing the point here?
Cheers,
Marco