Let's help Michael out. He's in a very tough spot.
There are a number of offensive things that took place. Some responses provided to those events were a small step in the right direction (severing ties with certain individuals, for example).
Other things have been identified as unattended problems. If Ernie and TSR want to make the long trek from where they are to a place where they are accepted and potentially even appreciated in the community, what are the things that need to happen?
I'll offer up that a basic starting block is that Ernie must address that video and show that he has reflected on why people are outraged by it, and why it is offensive. Further, he needs to apologize, with sincerity and remorse, for what he said. On a personal level, I'd like to see him recognize the damage he (and this entire drama) did to the names of Gygax and TSR. I don't think an apology like this can be done via written word. We need to see that sincerity in his eyes as he speaks. Obviously, if he can't make a personal apology with sincerity with remorse, this is a non-starter.
Then, he needs to establish how he will use his position to attempt to make amends - perhaps by using his resources to support the very things he spoke of with disrespect.
Then, he needs to make good products that contribute to social responsibility rather than fight it, and hope the quality is appreciated enough for the community to want the content. As many people are unwilling to provide money to people with similar histories, TSR might want to consider producing some free sample product, similar to the pdf basic rules available from WotC for D&D, to exhibit the progress and quality before asking people to pay for something.
That is just a start. Do others have productive suggestions for what could be done to make the trek back into a place of acceptance in the broader gaming community?