Surely there are enough negatives surfacing about Holmes and Theranos in general that... while firing the CEO may admit that they had been a bad judge of character, not firing her indicates that they still are.
Maybe. Or perhaps now they're going to keep her on a very short leash. In their shoes I could see bringing in a strong executive team, people with significant health care experience, while putting her in the role of visionary founder who does a lot of PR and rah-rah but has very low operational control.
Exactly. You have an individual at the head of the corporation that has done fraud. Do you really believe that's going to change from this point? Most people would have enough sense to let shame see them out. That's even more alarming.