My take is this.
Churchill thinks (knows?) he has an unfair advantage over almost all the other trainers and it isn't "good horses" and CDI is trying to protect the marquee American race that they own.
True, they can't catch him red handed apparently if that's what they believe. And true he only has Mickey Mouse positives showing up. But they know he made a mockery out of their day in May. And then the horse falls over dead to boot. There are many things I dislike CDI for especially closing Arlington. But I applaud them for standing up to him. Any decent business mind would think he needs to go and it would improve the game/sport/industry/business of horse racing.