As I said, I do not carry any water for Reserves 2000. I think that much of what they did back then, and now, is wrong headed. But the problem is very much a two-sided one with the only common ground between them being keeping the ResF separated from the RegF and under their own leadership. I'll add to that the "train when you feel like it" model of reserve service That leads to a perpetuation of the problem.
There were and still are two issues here. The first is that the Army ResF structure, as originally conceived as a Militia, had two purposes - to make contact with the civilian population across the country in a way that the small permanent force couldn't and the current RegF can't; and to be a core around which mobilization takes place.
The former is still necessary but the later is a model that is less useful because of the complexity of modern war and its much heavier reliance on equipment than that of the old style Militia (where essentially a rifle and a uniform for each soldier was 90% of the kit a battalion needed.)
Vernon's initiatives were presented poorly in a dictatorial fashion and not well received by his audience. There's a great difference between consulting, even extensively consulting, and building consensus. The problem in fact centred around those "LFCA directions" which were, in varying degrees unattainable such as "build and reach warrior combat readiness by year's-end" on ever shrinking budgets.
Vernon had issues in how he approached things which smacked of arrogance. Just as an example look at his
interview with Macleans after his retirement.
I recall those days as well, although with more distance than you as the issues were still hammering around in Chief of Reserves Council when I went there a few years later. Reserves 2000 was clearly marked as the enemy (actually more like the Devil's spawn) by those there and while I liked and respected many of my colleagues there, more than a few of them had drunk the RegF Kool-Aid. Rather than working together with Reserves 2000 to leverage their considerable political connections in successive governments, they declared war and butted heads. The result was that politicians declared a pox on both their houses and dodged meaningful reform issues whenever possible. It was such a wasted opportunity.
Vernon may have had good intentions, (I'll give him that) but his ham-fisted way of dealing with things poisoned an already shaky relationship and spread it nation-wide.
And just as an aside, I'll happily admit that there were a number of RegF leaders throughout the years who were very good and did try to advance the system in very meaningful ways. Unfortunately with the rotating desk career structure within the RegF, progress was fleeting and frequently abandoned or reversed to the former status quo.