I'd say he got exactly what was coming to him.
It's one of the unspoken rules of the job market that having an inside connection is significantly more effective than just polishing and submitting your resume to a hundred different places. Having an internal advocate goes a LONG way, but it can also result in someone getting a job solely off that connection despite being completely unqualified for it.
When this employee was passed up for internal promotion in favor of an outside hire picked by the boss, he tried his best to give him the benefit of the doubt. But when his incompetence became unbearable, it quickly became clear that something had to be done