He got fired just like he deserved to. The Maloofs aren't afraid to spend so this is how they should act:
(Jermaine O'Neal is likely gonna ask for a trade. In order to do that he has to opt out his current contract where he'd make an average of over of 21.3 M per year if he doesn't opt out. So here's my sign-and-trade scenario.)

Indy sends
JERMAINE O'NEAL (SIGNED TO A CONTRACT THAT STARTS AT 10 M)
JAMAAL TINSLEY (6.3 M)
MARQUIS DANIELS (6.4 M)

Sac-Town sends
SHAREEF ABDUR-RAHIM (5.8 M)
JOHN SALMONS (4.75 M)
MIKE BIBBY (13.5 M)

If Jermaine O'Neal wants out, Indy has to take a trade offer. So don't tell me Indy would be worse off like this, that's not the point. The point is they have to do some damage control. If Indy does this trade their salary cap would be improved by about 10 M as a result of getting rid of JO's huge contract. Sacramento actually saves money as well in the short-term (incoming value is 1.3 M less than outgoing value). That's very important in having enough money to resign Martin who's going into the last year of his contract.

Sac-Town
TINSLEY (Price)
MARTIN (Garcia)
ARTEST (Daniels)
O'NEAL (Thomas)
MILLER (Williams)
Does this lineup remind you of any team? In case Carlisle gets fired, hire him. Kevin Martin can do a decent Reggie Miller impression.

That trade would work for both teams, but I believe that the winner would be the Kings. I believe O'neal needs a new start and that trade would probably elevate is game. I really expected the Daniels to have a great season in Indy but you barely heard his name. Bibby also needs a new start he has done everything he could to do to help the Kings to win a championship, he needs a fresh start as well.

Musselman deserved to be fired, I doubted the hiring since the beggining he never had success has a coach, so why would you hire him?

mmm don't see the Pacers going for that one.

It's not great for the Pacers despite them saving 10 M on it, but the Pacers don't have the status-quo if O'Neal asks for a trade. Trade value of a player goes down immediately when that player asks for a trade.