The reason for this is quite simple, I should think: Radcliffe was trying his damnedest to rid his cause of a loose cannon who was doing more harm than good. The man who referred to Elly as the nut with the sandwich board reminds me of something I heard on the radio about thirty years ago. You see, for some reason, CBC Radio decided to spend an hour or so making fun of itself with a sketch comedy special of some sort. One of the recurring themes was that some lefty peacenik no-talent had written a long, boring, depressing play about nuclear war called "We are your dead" that really got under people's skin. When they got to the parody of the call-in show "Cross-Country Checkup", one guy said "If that's what life is going to be like after the Reds push the button down, yes, I very much DO wish to be obliterated in a nuclear holocaust." The reason I mentioned that is that it's sort of obvious that Elly and her noisy display and her disruptive tactics alienated the masses to such an extent that she was poisoning the well. Radcliffe's supporters didn't want to support his plan to save the theatre because it would mean that the crazy-ass idiot the dentist married would win.
What probably happened is that he explained this to Sue after the talking-in-circles speech and she and the theatre board convinced him that Elly was not acting as their representative. Since he didn't need to be told that she just plain gave up because she didn't understand his attempt to say "Stay out of politics, you drunken mental pygmy," their saying that she'd been instructed to stand down mollified his backers to the extent that he could save the theatre without having to worry about the monster raving loony showing up. What happened is that everyone won except the bugfuck crazy idiot yelling about the barbarian sports-loving hordes who hate goodness, happiness and love. Radcliffe got the old place fixed up, Sue learned that politeness got results, the rate-payers don't have to watch some deluded nitwit parade around screaming about nothing and John can have a quiet life. The only loser is the stupid person who's standing around moaning about her idea being 'stolen.'