I have heard it a few times now, whether it is true or not I do not know as I was not there, however did OLM not say "Nick v Ehab (handbags) " in another thread?
The first time I heard the story about what happened between Nick and Ehab(the day it happened) it was a shove, by the second day the story was that he'd shoved him over and by the end of the week, he'd laid him out. I don't actually think it was anything significant.
I believe you have more or less nailed it. The general reason given is enough from the management position's point of view; they probably wish to limit the discussion that could draw them in - a sensible strategy. It is the continued remarks from Barmby that have compromised the relationship, a relationship that must be strong to continue - hence, the sacking. I believe there is some confusion over Barmby's terms of employment. Barmby had a players contract (fixed-term), he then had it expanded to that of player/coach (terms unknown, but probably fixed-term - the games norm), he then had a brief period as caretaker manager, followed by being awarded a contract as the full time manager and this (I believe) was reported to be a one year rolling-term contract. The most ho would be likely to be awarded would be one years wages - it is very doubtful that he would be awarded more as he had always made it clear that he had no managerial ambition post Hull City. I find the nature of the departure distasteful (unless there was physical offense involved), but do believe that Barmby will struggle to win any further action.