Apparently a Judge ruled Palin had the authority to terminate the Wasilla police chief for any or no reason at all based on Alaska state law.
Having authority to fire someone doesn't mean she didn't misuse her power while doing it, it just means she was cleared on the firing. Remember OJ according to our criminal court system was found not guilty, yet he was guilty in a civil court. The important thing is this is now two cases where the person being fired has reported it was because of personal disagreements with her.
If it was just one case then maybe you could blow it off, however two totally separate cases start to show a trend. However I'm quite sure you guys will blow it off as well, as long as it's your "appointed one" nothing can be wrong..