The military has a leadership concept of "lost confidence." That is what we have here in Masi. He knew or should have known what he did was wrong. If he gets away with it once there is zero reason to think he won't do it again. He blew it in the biggest way. There is no coming back from that. Give him a job sharpening pencils if you want, but he has demonstrated he is not capable of making important decisions under pressure.
It also says a lot that someone would lobby to keep him because his fuckup helped elevate their favorite driver. I think Masi's incompetence was driver agnostic, he favors the show and will compromise competition to do so. That can't happen.