Nothing in your post contradicts the evidence that he is a bully. There’s tape of him grabbing a player by the neck. There have been many recorded incidences of him verbally abusing his players, and showing terrible disrespect to the officials, including throwing chairs on to the basketball court during a game.
That type of behavior is inexcusable, and no quantity of wins or graduated players should let him get away with it. His behavior has provided the worst sort of examples of sportsmanship to his players.
Many of Knight's former players live in Indianapolis. They are doctors and lawyers and coaches and though I've never known any of them on more than a professional basis, but they are uniformly leaders in the community. They aren't drug dealers and they don't get arrested.
I had the good fortune to spend several years as a radio announcer for Indiana basketball during the Knight years. I didn't know Knight personally either, but I got a good, first-hand look at that program, the players, and the people. They were good people, and by design. That's how Knight ran his program.
As far as providing examples to his players, what do you think his players took away from Knight's treatment of Landon Turner?