You know, the more I think about it, the more I think that the Stossel incident was just used as THE excuse/reason to get rid of Schultz.
From what others have said, Schultz often had a bad attitude, was difficult to work with, and could often be a troublemaker; just look at his last day in the AWA.
I suspect the old man hired "Dr. D" mainly because 1.) he was Hogan's buddy, and 2.) to further weaken Verne's roster.
There was absolutely no reason to tolerate and/or keep Schultz.
If he was worth it, Vince would have capitalized on the 20/20 incident by turning it into an angle.
Instead, they used it as the justification to can him.
Also, LOL at Hogan losing his place around 2:10.
After stuttering, it looked like he mouthed, “Ah, fukk,” while walking off camera.
Heenan or Vince probably gave him the signal to go back out and finish just so they wouldn’t have to do the Schultz/Piper promo again.
Who knows what that hillbilly would have said a second time round.