The issues that she cites are not only legit, but highly substantive and challenging. And yes, we are eating their lunch in many areas of research but we we face many of the same challenges, in common with most other major research universities. As to whether the Board "did the right thing...", I don't know enough about Sullivan to have an opinion, but it looks like the way is being paved for her reinstatement:
http://www.roanoke.com/news/roanoke/wb/310523