I think a possible issue here is that MON was very selective in who he signed and bought loyalty through higher than market wages and playing time. When GH came in and tried to establish himself, the senior players, who were spoiled by MON's methods, rebelled. Carew lost any moral standing with me when he talked about the fans singing his name. It obviously went to his head.
For now, I'm taking Houllier's side, though he is being passive-aggressive and is not free of blame himself. I think it's a difficult situation for him.