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Yeah, I'm thinking there's more going on too.
If Fusco was 100% competent and doing a great job, it would be crazy to fire him just to send a message to another empolyee.  That would be some serious organizational incompetence.  Maybe the Mariners are really that disfunctionial, but I would sure hope not.
There's got to me more going on.  Most likely scenario, there were some serious warts on Fusco's record and some serious questions coming his way from within the ogranization.  But being under Jack's wing afforded him with the protection.  Then when this whole mess blew up, Jack's favor was no longer strong enough to protect him and the anti-Fusco forces were able to break free and storm the beaches.
Or perhaps Fusco was destined to be let go at the end of the season regardless, and this just sped up the proccess.  As Churchill may have alluded to.
And maybe we're focusing on the wrong player.  Maybe Lueke wasn't the big problem, perhaps it was Smoak.  Smoak may turn out to be a very useful player, but he certainly  does not seem to be the player that he was advertiesed to be.  It would have been Fusco's job to know this.  Maybe recommending Smoak over Montero (which also had the side effect of creating the Lueke situation) is what finally pulled the trigger on his firing.