Yes, he typically champions people who sell much less than he does and using an act who was very unpopular with his audience for so long must mean he had some sort of motive, and it was not providing the best show possible. Even if you think she's a genius, she was not popular with his audience, and who in their right mind would keep a situation like that going?
Sometimes Brummie Boy writes that Morrissey could have been as big as U2 - don't quote me on that exactly - and I don't know if that's true, but in the early 90's he was very successful in the US. He could be much bigger than he is, but I honestly believe that his true goal, whether he is aware or not, is to be a public figure. If you follow his actions and the consistent results he has much more emphasis on having people talk about him than listen to his music. I think a good day for Morrissey is one where he outrages the readers of the Daily Mail.
And about Bowie, I'm not an expert but I've read a couple of books about him and many interviews and articles. He has been accused of being sort of a vampire creatively, working with someone who he wishes to learn from or whose energy fits his current incarnation, and then discarding them when he loses interest. But I really don't think he was trying to "be Morrissey" or use Morrissey's energy in the way he might have been using the energy of Iggy Pop, Klaus Nomi, or Stevie Ray Vaughan. But the thing I don't think David Bowie could probably accept was Morrissey leaving the tour with so little notice. I think that even when David Bowie was at his most eccentric in the early-mid 70's I never heard or read anywhere about him being less than professional. It seems he took the cancellation personally. And it seems that David Bowie was always vital artistically and financially innovative, and he had a happy life and a great relationship. He really came from a very dark place and put that behind him and was a great role model for other artists and musicians. He probably just didn't have time in his life to deal with Morrissey's energy and put it behind him. Maybe he was angry but my speculation is that he just didn't have time.
And obviously doing favors for Kristeen Young is doing favors for Tony Visconti, which has its benefits just for the quality of his production, but also for his connection to David Bowie. I think Morrissey probably wanted to work things out with Bowie. I just can't believe he was that impressed with Kristeen Young. If he had seen her playing her keyboard in the subway for donations I don't think he'd have taken her around the world on tour. Also I enjoy messing with MIDNITE.
The Smiths could have been as big as U2 but Morrissey as a solo artist? Never, not in a million years. The synergy of that band was noticed with awe by everyone except Morrissey...and Marr..tragic waste but...we are where we are...