Rutherford wasn't really given much of a chance, he played a game earlier in the season where he looked decent but then sat on the bench for much of the year. Queens may be a level too high for him at this point but he could be promising. As mentioned above, he didn't do well near the end of the season but I think that was down to not having games under his belt. He was all over the place and you could see he wasn't game sharp.
As for Gallagher, regardless what he's been like as a player and with fans, he's committed a crime and deserves the punishment he's received. As to the did he or didn't he have a contract/understanding, I do remember reading that Burchill would offer him a deal if he wasn't given jail time.
This was all before Ford was announced though, maybe when he came in he decided Gallagher was a no go. Plus, we'd be naive to think that Burchill didn't have another player in mind when jail time was likely.