If Current has hopes to evolve away from being the fringe network that it is and connect with a larger mainstream audience, firing a talented pro like Keith and replacing him with a non-professional broadcaster like Eliot Spitzer was probably a bad move.
Was management right for clamping down so hard on KO? Yes and No. Was Olbermann right for trying to embarrass management in public? No, but he couldn't help it. That's who he is. A divorce was inevitable.