I would venture a guess that because Mr. Stewart is a senior officer in the league, he has a vote in what happens. Not to mention, he is responsible for assigning job duties to his subordinates (including a significant salary and travel reimbursement budget), so if I were Mr. Hagwell, I'd definitely get my senior officials' coordinator involved early in the process.
If Mr. Stewart were running the league, he would not have been fined or reprimanded for the actions of which you speak. Is there a lack of league confidence? Perhaps. Is there anyone else better to do the job? They have a point when they say that tryouts are in August. Those men (and women, although usually you only see them in a women's game) come out, giving up Fridays and weekend overtime in their day jobs, to officiate out of their love of hockey. I realize they are for hire and are not volunteer referees so there is some expectation that they do the job well, but it's something that needs to be respected.
On an unrelated note, I just received for my fortune cookie, "Pessimism never won any battle." Food for thought.