Technically speaking, it wasn't a bad hire at the time. He had experienced success to that point. Limited, but it was success. The fact that he had lost to Dooley doesn't really change that. He'd been a head coach for 6 years and there was reason to believe he might be ready to take the next step. He just happened to be a pretender.
That said, I don't fault anyone who initially "bought in". It was not a Dooley hire. I bought in myself and was fully on board through the end of the '15 season. My opinion began to sway heavily over the course of the '16 season in spite of the 5-0 start (the dreadful starts against Appalachian St, Virginia Tech, and UF were huge red flags to me for some reason). By the back half of that season, I was barely phased by the SC and Vandy losses. I was already 80% certain he wasn't the guy. The remaining 20% was taken care of by this year's Florida game.