Imagine working for an industry which makes movies with a message, but which are made unethically. I wonder why the movies don't sell well..mmm...Its going to be difficult to make a movie with a solid story that reaches audiences, if the process cannot live up to the ethics and values it preaches. Audience can tell, and that is why audiences decide to watch something else, more authentic.
Shrek was success because its humor and theme where based on hate against Disney characters. Great humor, but it was like that kid that laughts at the fat kid. It was however an honest movie, and that is why it sold so well. However, its a different deal to make a movie which is not based on crushing someone else. That is where Katzenberg is not good at. He is a leader of fear, not of respect (specially based on values). He is good at succeeding by crushing, not by building. He is frustrated to live up to the shadows of others which have built empires, and that is why he is going into helping Obama, dealing with Fox, talking with China (even when he knows its not a good idea). He can't wait to get into the "bigger leagues". So he is willing to give the keys to Bill D, and try to play with the "big boys". In the process, he will ruin the company, sell it, and tell it was someone else fault. Perhaps, it was just "bad timing". Remember one thing: Greed sees no consequence.