I disagree entirely with colonels & joco. What are we talking about here? WIS should not have tried to honor their customer's request at all. No good deed goes unpunished!
Now, having made the mistake of honoring the request, CS has an obligation to clean up the loyalty issue so that headpirate can apply for a different job at the D2 level. Hopefully they see the ticket in time during job applications to fix the loyalty issue (or at least to ensure headpirate can get back in at D2 during open signup), but that's the game! Think about this in RL. A coach accepts a position and then reneges on the commitment to the new school? Yeah people would view that coach in a negative light. Absolutely! That said, I really do think that CS needs to fix the issue for headpirate, because they created the problem in the first place.
Don't get me wrong, there's a problem with the hiring and firing at D1. However, anyone could create an ID, cherry pick a team at D3 to have a winning season and not even necessarily need to make the PIT, and be eligible for every D2 gig after that 1 season. That's not the problem. The problem is that high D1 jobs, with high baseline prestige, don't fire coaches frequently enough and for which eligibility is far too difficult (not talking about gameplay mechanics of hiring & firing, but more along the lines of what the customer base and potential customer base actually want!).