You outlined the best case scenario, that he's a moron strategically. I'll offer another alternative, the worst case scenario - he's consolidating power by eliminating those who threaten his leadership both presently and in the future. Sloan and Pierre both are a threat to O'Toole. Pierre is the heir apparent so a demotion helps O'toole. I imagine he'll be coming for Lewis next, because she also has a strong path to leadership. Lewis isn't an MP yet but I can see him figuring out a way to prevent her from running in the next election.