I have been re-listening to Guns of August. I heard a great line Rich man wrote about the commander of the French 5th Army having been right about the German right flank being the main German thrust. He ordered a disengagement from an attack against orders, and saved the entire French army. She said it is not known if he moved out of fear or wisdom. But she added, "Sometimes fear is wisdom". It struck me that astute observation may apply to this captain.
He could have been right, and still deserve to be fired. Those are polar opposites. I do not think the Navy had any choice. On the other hand, the acting chief keeping the story alive with an asinine comment to the crew is also plenty stupid worthy of dismissal.