It sounds like Loucks was a bad hire after reading his spiel.
Sounds like a case of really bad timing. He probably would have been a much better hire if his personal situation had been more stable. Sometimes it happens that you hire the right person for a job, and then an event in their personal life affects their ability to perform up to expectations. In my late teens/early twenties, I split up with my girlfriend of 3 years right at the beginning of my final year of college, and flunked out as a result. I just couldn't focus anymore and needed a break to get myself together. I'm pretty sure it's normal for these sorts of circumstances (bad breakup, divorce, death in the family, etc) to affect an individual's ability to perform at work, so I think it's a little harsh to say they shouldn't have hired him in the first place (if that's what was implied).
I appreciated his self examination and brutal honesty. He wasn't ducking accountability. He understands where he could have made better choices and never slighted his employer. He sounded grateful for the opportunity and the experience.
In regards to his comments on the client, it's somewhat encouraging to hear that Wizards has a lot of good people working there, and equally discouraging that the suggested problems revolve around bureaucracy and poor workflows. Those issues generally don't get fixed easily. Anyone who has worked for a large company understands this.