I don't think whether or not it was the truth was the issue, just the fact that it was said. I don't think Kino even meant it as disrespect. Royce did the right thing by not firing him. It reminds me of Stat Quo saying he said a joke and Eminem got offended and that's why their relationship went sour. Or Green Lateran getting fired because of him telling Jadakiss that Kiss should really go at 50. They sensitive over in the Shady camp mane.
Who gives a fukk. As long as the final product comes out hot, which it did, i dont care who sat who down and did what.