Just got here but, maybe the reasoning is that you're suggesting that Ms. Williams actions were unethical as opposed to a legal course of action that could have been pursued in a different method is a type of characterization. A characterization that is a form of labeling.
I think we can form an opinion about the events that led to Ms. Williams ouster of Gary. I will agree with you that there were likely other options available to Ms. Williams once she had a majority of the shares of the company, but I don't see the option she chose to be particularly unethical. From a practical business standpoint, it would have dragged the company down. You simply can't operate a business with a powerful minority shareholder who is outright hostile to the leadership, which at this point was Ms. Williams.
I am characterizing Williams as an unethical businessperson during that brief window when she effectively took over the company (and for a few other decisions well after all this which hasn't been discussed in this thread). I am characterizing Gary Gygax as both an unethical businessperson and far worse than that, for a much longer period of time.
Gary's actions in Hollywood were frankly gross. I've intentionally not mentioned my views of on of his son's actions at that time because he just passed away and I'd rather leave him out of it. But the stuff that happened in Hollywood, that entire period of time, was horrible ethics and was damaging the company for sure. The argument that the way to make movie deals was to coke it up with playboy bunnies at a mansion in Beverley Hills and invite entertainment people holds no credibility. I know actual famous people from the entertainment industry at that time and that was not in any way necessary or even one of the more effective means of breaking into the business. It was the result of people who had already broken in and had more money than they knew what to do with, not the means of breaking into the industry to begin with. That whole thing was an abuse of company funds, while he was neglecting his company duties.
The only point of disagreement I had with the podcasters was their conclusion that it was specifically the royalties harming the company more than anything else. Gary was forgoing those royalties as debt. In fact, had he insisted on collecting them (which was his contractual right), he could have bought more TSR stock with the funds and transferred the cash that way back to the company. He didn't have to take it as debt and probably shouldn't have from a business perspective. The settlement offer Williams later made to him included a payment which was even larger than the royalties that was in debt at that point doubly making it clear (to me at least) that it wasn't his royalties harming the company as much as the podcasters repeatedly claimed it was. It was more the entire entertainment department's budget, and his absence from the company itself, that was doing the harm.
All that said, Gary being a worse actor doesn't mean Williams should be free of criticism. I should be free to characterize Williams based on her actions as a bad actor, despite Gary Gygax being a worse actor, without being called out for daring to characterize Williams as a bad actor. I never said or implied that was my sole takeaway from the podcast, but Snarf literally just claimed that I did say it was my sole takeaway, though he'd quoted posts of mine where I made it really clear it was not.
Before Williams had the shares, she had talked to the Bloomes about the matter. She could have suggested to them better courses of action, but instead installed herself. They didn't choose her - the podcast makes it clear it was her plan. In addition, Williams was Gary's personal adviser on these matters. She could have talked to him about finding a better way to resolve his differences with the Bloomes. She chose to not do that as well, probably because he insulted her and she quietly plotted revenge from that moment on. I don't fault her for being upset - I would have too. But she had a responsibility to the company, even though Gary was clearly neglecting his responsibilities to the company.
In my opinion (which certainly could be wrong), a better solution would have been cutting the Entertainment division entirely and bringing Gary back to Lake Geneva as a Lead Designer or something like that, until the company was back on better footing. In exchange for that, Gary should have been offered a new issuance of TSR stock in exchange for his royalties debt as non-preferred shares (so he'd make money if the company ever sold, but not be voting on board membership with those shares and only with his prior shares), and a portion of his royalty rights in exchange for D&D trademark rights, and dropped the Entertainment stuff temporarily and the CEO position in exchange for another CEO (maybe Williams but more likely someone the bank found). The new CEO would be buying the Blumes shares.
Gary was willing to come to the table to re-negotiate the royalty issue in exchange for making it clear he owned the rights to D&D. That could have been part of a bigger deal, BEFORE WILLIAMS' COUP. Indeed, had Williams made the settlement offer she did make before she took the stock, I am betting Gary would have jumped at it. He just needed to be made to feel like they were not taking everything from him by force. And introducing the bank as a motivating factor and initial decisionmaker, along with the exit of the Blumes, probably would have mollified a lot of the hurt feelings over it.
Now he didn't deserve that settlement offer, in a vacuum. Again, he's a worse actor than Williams at this point. But I think it would have been a healthier solution for the company going forward if Gary had settled this on equal footing with Williams and the Blumes, and been part of design going forward. I don't know if the fate of the company would have been better going forward, but I suspect it would have. We're not talking about some missteps Williams makes after this point, but she definitely makes some missteps and at least some of them were the kind Gary would have advised against. His hyper-focus on D&D, even though a meaningful portion was based on his royalties, probably was a better choice for the company than some of the "diversification of product line" that Williams engaged in later. But maybe not.
Maybe Gary still being there in some meaningful capacity would have led to the company failing earlier. I don't know. But I suspect it could have gone better had Williams made some better choices at that time. And certainly it would have gone better had Gary made some better choices at that time.