Alzrius
The EN World kitten
You can not apply today's logic to several decades removed business decisions.
At the time of 1st ed shift to 2nd ed there were some very strong market forces in parent groups that thought DnD meant satanic worshiping cultists that were going to corrupt the world.
The whole RPG movement and miniatures movement took the hit.
My understanding is that, while the management of a number of RPGs quickly bowed to the public perception of role-playing games as vessels of Satanic suicide among teens, the overall effect was to actually make RPGs more popular among younger audiences. I can't link to anything, but I've read statements from people who were at TSR at the time saying how game books were flying off the shelves because kids wanted something that their parents disapproved of so much.
Drizz't owes his existance to the change as he was a replacement character created in a five minute call as Salvatore was told that there would be no thief/assassins in the 2ed.
Factually incorrect. Drizzt was created before the 1E to 2E changeover. What you're recalling is the argument that R. A. Salvatore had with someone at WotC (I can't recall who) when they called and told him that he had to kill off Artemis Entreri, who was an assassin, because 2E would have no assassin class.
Salvatore won the argument by stating that Artemis wasn't an assassin; he was a fighter/thief who killed people for money.
The Time of Troubles was most importantly an attempt to 'blue code' the realms. The game that had originally been played by Bohemian college students was now being spread to high school and grade school students and an effort was made to clean up the 'objectionable' bits.
The Time of Troubles was the "blowing up" of the setting that let them make the changes inherent in the 1E to 2E changeover. By itself, it had nothing to do with erasing things people found objectionable (though a few of those, such as giving "demons" and "devils" other names were a part of the larger edition change).