Yep, pride definitely got in Ted Tolan's way. He could have gone back to coach in the OHL to showcase his coaching abilities. Respectable NHL offers would've come his way. The claims of racism were just ridiculous. Even worse was that some media-types (including a now-retired sports page editor) picked up on it, and uncritically speculated on the unfounded rumors, as though there was some basis in fact. Nolan, in fact, was a very popular coach.
No matter how people perceive what John Muckler did, or didn't, accomplish during his time in Edmonton, he is respected around the league. So, although that doesn't necessarily mean Nolan was blackballed, that one messy instance contributed to a reputation (deserved or not) that he could be a GM-killer.
A long time ago, a fan wrote a letter to the Sport Editor of the Buffalo News. The fan astutely noted that every player, who was identified as being loyal to Ted Nolan, was eventually moved out. Pat LaFontaine, Matthew Barnaby, Bob Boughner and Brad May were among them. Michael Peca might have fit the profile, but he stayed on until financial issues forced him out too.