You make a thoughtful response, and I do trust the sincerity of your overall opinion. A couple of responses to yours:
It is disingenuous to argue that the girls would have a better chance to get a scholarship in the middle of the season (after not even being allowed to train with the team or use the facilities in the fall) then at the end of the season. There are far fewer scholarships available at midyear.
It's one thing to fire the previous coach's staff when you are hired as a head coach. That's sketchy. It is quite another thing to fire his athletes, before they have even been given a chance to show what they can do. That's unethical.
If it is fair to point out BAS's prediction that the freshman scholarship athletes she kicked off the team would not improve enough to score a lot of points in the SEC and NCAA meets was proven correct, then it is also fair to point out that her prediction that the sixteen scholarship athletes she took to the NCAA meet this year (at least two of whom were also US#1's in high school) would do any better was proven quite incorrect.
So she has proven to be at best a mediocre judge, and an inept developer, of talent. We can debate whether that excuses her lack of ethics.