He is suggesting that had holifield not fouled nonstop, he wouldnt have got his ear bitten. He's not suggesting something ridiculous, tbh. Just an idea that could make sense depending on the point of view.
Ofc it was right to throw the towell. Many idiots talking about going out on the shield when they see desperate situations where the fighter cannot defend himself and is about to be literally executed. And they always talk about "other people"'s shields, ofc. Those idiots will be the same blaming the corner/referee for not stopping the fight if a career ending accident happens. The corner did the right thing, no doubt at all. None.
I've never seen him look worse, sluggish , disinterested , slow and weak. He's a better fighter than Cobbs but that time appears to have passed. If he keeps fighting like that he'll get fed to a young lion at some point and it won't be pretty.