I've played this game since mid-march... and I'm mostly just a mini-game player. I have a few people I've gotten friendly with but I really don't "know" any of the staff. I do the host games, smile and say hello, and move on when its over so more people can get in the room.
I've read both sides of this fiasco and seen a lot of backstabbing, jumping to conclusions and immature behavior on both sides of this fence. None of it is really my business. Like I said I don't personally know any of the staff so despite reading all these logs and explanation posts I don't feel like I'm qualified to be telling anyone who should stay and who should go.
That being said....... I find the use of the C-word particularly appalling. I'm trying to picture how I enter a Kali Host game, and smile and wave and politely thank her for her time running the games when I know behind the cute little red ears I saw such vile hatred for people who are supposed to be her teammates and friends. We all have bad days, on my worst I've never said anything like that to anyone out in the real word, let alone in a Disney-based game. I just can't see myself ever wanting to go into her room. This is my perspective for your information as your "average joe player".
On a personal note... when you talk about not liking confrontation... I totally get it. I'm a 37 year old HVAC engineer. When I was younger all I wanted to do was sit at my desk and if I screwed something up I wanted to just avoid talking about it until it went away. I'm not criticizing you, I'm empathizing. Some of the things you've said make me think you think the same way I did then. But eventually I was forced out of my shell, and I've had to take some lumps when there was no way around admitting I screwed up. You are certainly taking your lumps over this.
I guess if I was in your shoes, I'd ask myself, "am I enjoying overseeing this staff, or is this just stressing me out?" Would you be happier just focusing on the technical aspects of this game? Maybe its time to think about appointing someone to be sort of the "prime minister" of the game to manage these day to day affairs. Confrontation is inevitable again in the future and there is no shame in wanting to delegate tasks to others. After all this is just a game. This is NOT a criticism of you as a person. I am empathizing because I've been through this kind of stuff. I believe in Keirsey typing (google it if you are not familiar) and everyone has a different way of addressing conflict in their lives. It is just the way we are. You have to find the best way for you to address this in the future or history will repeat itself.