The diva incident in question was Candice, he allegedly shat in her bag and she quit because of it, citing bullying, as this was around the time the Be A Star stuff began, so they suspended him.
The problem Orton has is the same one that Shawn had in 1998 and Hogan had in 93... their auras in the ring had become tarnished by their backstage relationships ,drugs allegations and their conduct out of the ring.
Shawn had to literally quit the biz for 4 years, though at the time it was forever, but to those in the biz he "didn't want to drop the belts"...
Hogan had to totally reinvent himself, it wasn't simply a case of "going heel", he had to run in a pack for the first time and find a cohort in Bischoff who would back him up financially so he could surround himself with his cronies for that initial WCW stint.
Orton doesn't have Hogan's "stroke", knack for attracting sycophants or inventiveness and he hasn't had the time away that allowed people to forget Montreal that Shawn had but most importantly he doesn't have the business environment on his side. It's a different time to the other 2 guys had.
WWE can never go back on it's wellness or anti-bullying campaigns now, and this is a guy with strikes and a bad rep for both, he has made enemies in TNA so going there would be a risky move for him (or them if a lot of talent decided they wanted to leave if he came) and even if Orton took a year or two out, he would miss that next big catchfire moment which is bound to come soon.
When Shawn disappeared and came back religious, people got behind him because of the time involved but also because it was the early days of the IWC, so people knew how messed up he was when he left. We knew Hogan had testified to taking roids, but we didn't know a lot of his other bad traits backstage.
In Orton's case, every mistake is out there for all to see... It's hard to root for the guy because everyone from fans to co-workers have the same story to tell, he's had a career handed to him and his attitude shows this, and most believe he WILL screw up again, it's not if but when.
That is bullshit, specially the last part where "everything was handed to him". If you believe for one second that his career was a mix of luck and politics, than you are delusional. There is no formula to make fans interested, if you suck fans won't care about you, if you do a great job you'll get everything you deserve and Randy Orton had the fans behind him since his stint in Evolution - they saw potential on the guy, and they saw it well because Orton is one of the most talented guys in the roster, both in and outside of the ring and they put him in Evolution because of that. Heidenreich had a feud with Undertaker, he actually dominated him, and fans didn't care so it's not about handing anything to said guy, it's about giving them the ball and see if they can run with it, and Orton did it with his work, not yours nor McMahon's work, he did it by himself, he got over by himself saying otherwise is plain stupid.
Now onto his suspensions, first and foremost Orton was an asshole, he is the first to admit it and he got suspended back in 2006 and 2007 for that. Now, after 5 years clean he got suspended again because he was on some painkillers, not drugs (like Evan Bourne), just something that happened to have something against the Wellness Policy (it's not always for drugs, a lot of medicines are forbidden because they can contain stuff like testosterone). I can't see why you are comparing Orton to Michaels, because you are comparing two different persons and if Michaels for God unknown reasons stayed clean after 4 years absent, you don't believe that Orton can stay clean for the rest of his career? Too much hate and I haven't seen no reason to believe he can't, in fact he alone said more than once that he treated himself for the sake of his daughter, wife and himself. And in his main event run, including a WrestleMania Main Event, he did it with no problem whatsoever, at least for what I've seen, he never hit a fan in live television of some sort and nor he had an attitude problem (that every main guy has if you believe every bullshit the IWC reports) so big that TMZ reported of something.
And if we start to talk about his talents you can't deny that the guy has IT, and let him go and become a free agent is a big hit for the company. Don't you forget that WCW boomed thanks to guys that had less name than Orton. If he shows up at a TNA Show and gets himself in a feud with the likes of Bobby Roode, you may believe that people will tune in to watch it. The guy still has something like 6 years in him at his very best and letting him go is a stupid move.
However I think that he should stay home for more than one or two months, I even think that he should only return near SummerSlam, to create buzz and to have a relevant storyline, not return like he did, by beating Heath Slater in a 4 minute match and leave, that is some serious shitty booking. I don't believe for one second that his fall is only his fault, in fact I believe that WWE's Creative Team is the reason he started to lose interest, and if you have a guy like Orton and use him as poorly, you're gonna have a bad time. In some way he reminds me of Jake Roberts, one of the most talented wrestlers ever, that were victims of a shitty dark past. And almost 30 years since Roberts was in his prime, you may very well believe that now the fact that he didn't hold any WWE Championship is a wrestling "crime".