We did not "stand by and watch". Many Mozilla staff made public statements supporting Brendan as CEO, including (courageously) many LGBT Mozilla staff. Many more publicly supported Brendan than publicly opposed him. The media of course focused on his opponents because "Mozilla employees call for CEO to step down" gets more clicks than "Mozilla employees support CEO".
Maybe we could have done more. At the time the firestorm was hot enough that it was unclear whether speaking out (and what sort of speaking out) would help. Brendan's resignation came as a great surprise to almost everyone at Mozilla, including me, and up to then I honestly thought simply saying nothing and letting the controversy blow itself out was going to work and was the best course of action.
To all the people who are shouting about "free speech" now: did you speak up to support Mozilla while we were defending Brendan as CEO? If not, why are you more enthusiastic about bashing us now than you were about supporting us back then?