Reminds me of a story my brother-in-law told me following our back to back promotions under Joe Royle. He (my brother in law, not Joe Royle) was tiling a guys house in Bramhall when a highly respected former City player visited. The talk was naturally around our return to the top flight and the ex player said "The first decision the club will make will be who the new manager is". Now I can't be certain that's what was said but, if true, it suggests the club recognised (rightly as it happened) that Joe was the right man to get us into the PL but not the right man to keep us there. Maybe they were swayed by the emotion of back to back promotions, maybe they felt there would be a media backlash if they sacked Joe under those circumstances or maybe there were financial restraints which meant he stayed.
Always had a liking for Joe, saw his debut at Liverpool on Boxing Day 1974 and, despite the manner of his departure, I've never heard him badmouth the club.