One of the people who knows more than all of us is Ryan Dancey. He actually read through all of the board meeting notes, scoured all of the financials, and did a deep dive into the company with how it was working now (In 1997) and how was working from day 1.
And his analysis is pretty damming. It's not just on Lorraine. Or Gary. Or the Blumes. TSR was a horribly mismanaged company from day 1. Not just from poor investments and a complete lack of market analysis, but an absolute ignorance of what the gaming community was saying, and how the community was changing over the years. Gary could have kept control and TSR still would have died because Gary would have been worse in ignoring how gamers and the game were evolving. And we wouldn't have had the settings from 2e that many love on top of that. Christ, it's 40 years later and some of the old school "Gary is god" folks are still up in arms about how 5e is treating race and orc alignments. Can you imagine of 1e style play was still the focus going into the 2000s if Gary was still in charge? It would have been horrible for the game and the community. And I love 1e myself, but even I know I'm not the typica gamer these days.
Lorraine did some really awful things as the head of a company, but they don't seem to be any worse decisions or choices that the Blumes made, or Gary made. But she gets the lion's share of the blame. Largely based on hearsay and slander.
Looking at how some of the original folks in early TSR have reacted in the past 6 months to the game's current direction (catering to SJWs!), and the scandals of nu-TSR, and I'm positive that much of this disdain for Lorraine was not because of her decisions, but because she was a woman in charge of the boys club, and they couldn't stand that. Which is ironic, the people shouting how she has disdain for gamers are the ones who actually show disdain towards her.
She absolutely deserves blame, but she doesn't deserve to be the scape goat. I suspect Gary will never be blamed despite being one of the biggest reasons for the demise of TSR simply because of the deification of him. But if we are to be honest, we need to acknowledge that LW was put in an impossible situation and made some really bad decisions, but her, Gary, and the Blumes are all equally to blame for the demise of TSR, and she has been unfairly criticized. Not for things she did do wrong, but the things that are pure hearsay