Hmm. Looking into this a little further, is it possible Danny actually
did quit over not being considered for the WMF Executive Director job?
There's some info about the job itself in
this Foundation-L post from Florence Devouard. Florence expresses a certain amount of disappointment with the Foundation's recent fundraising activities, and since Danny was the Grants Coordinator, he presumably would have been heavily involved with that.
Of course, Danny shouldn't be blamed for lackluster fundraising results - let's see, just in the last few months we've had the plagiarism report, Qatar being blocked, a WP revision page used to spread a virus, Microsoft's pay-for-editing debacle, the Middlebury History Department, Stephen Colbert, Conservapedia, Fuzzy Zoeller, Essjay, and of course the deaths (real or otherwise) of Steve Irwin, Ken Lay, Sinbad, and I suspect various other people too. And I'm sure I've left stuff out...