The general message behind Lady Krillers was "sometimes forced writing can be harmful to a franchise". The problem was that there was an unclear vision for properly addressing that issue, and it just ended up confusing everybody. At the very end of the episode, Milo even says "I've learned my lesson. I have no idea what it is." Watching it all back, it feels like the writers weren't even sure where they were going with it themselves.
I wanna give them at least a LITTLE benefit of the doubt. Because as much as it...totally...definitely...feels like a narrative that...directly refutes diversity altogether...and feels super duper uncannily like transphobia at several points...MAYBE that wasn't the intention. But it could totally be interpreted that way! In fact, from what I've seen people saying about the episode, it is ALMOST ALWAYS interpreted that way or in similar negative ways.
At the very end when Milo talks to the director, he admits that any changes to the Krillhunter continuity wouldn't matter because he doesn't care about anything making sense. If this is supposed to be the moment that ties the whole lesson together, it becomes even more confusing. The idea that the Krillhunter movies had become worse with every sequel was introduced at the start of the episode, but then it wasn't ever brought up again until that moment at the very end. If the episode was supposed to be a commentary on writers caring more about money than continuity, why was the whole rest of the episode focused on gags about Tobias Trollhammer trying to act like a woman? Maybe it's supposed to be some kind of allegory related to forced diversity, sure...but then what would that allegory be if not "sometimes when you add traditionally feminine things to traditionally masculine things, it doesn't make sense"?
I think it's possible that this episode was being extremely rushed for whatever reason. I can't think of any other possible reason for the writers of that episode to have let that idea be the one that went through production. It felt meandering, lazy and indecisive about its messaging.
If you all have anything to add, I'd love to have more of a conversation about this. I want to ask someone who worked on the episode about it as well at some point.