I disagree. Assuming creative control over a studio by the publisher is generally seen as a big no-no, not just at Bungie and not just in video games, but everywhere. Activision regularly gets away with it because of how big they are.
Bungie should have backed O'Donnell 100% for the sake of their integrity.
O'Donnell had every right to be disgruntled IMO. He helped build Bungie from the ground up and is one of the 7 founding members (I.e the reason Bungie likes the number 7). He was trying to protect the integrity of his life's work and the company he built.
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