Putting up the wrong photo is hideous and unacceptable, but it's clear this is about consistent racist behavior. There are some institutions that won't be able to move forward with their current structure or leadership, and if no one is willing and able to take over and lead them in a new direction, they will fall.
The problem is outrage is such a business in the US. It's almost as if Jully Lee and East West Players are being further victimized by being used as an excuse for a rather sleazy stage organization to disband itself. And then used again by being turned into culture war clickbait that will further enrich billionaire media moguls.