IIRC, according to some other articles on FR, he insisted upon taking a junket to DC when Gov. Palin told him not to, and he used the junket to solicit support for a program that Gov. Palin had vetoed. The governor has the authority to require that a person in Monegan's position not try to undermine her authority. That Monegan tried to undermine Gov. Palin is perfectly legitimate reason for his dismissal.
Yes, this is exactly right. He wasn't fired for the Wooten mess, but for the unauthorized travel.