I disagree. When in disaster-mode for a privately held company, the board should not be focused on restoring shareholder faith -- but in restoring user/customer faith.
So Digg might in fact be doing right by their customers in this case. They're certainly bringing in more money than Reddit.
I would count them as a group who is not prepared to sit around to wait and see what happens - they want things fixed yesterday. Giving Rose a 2nd, 3rd chance etc doesn't build trust with this group IMO.