Yeah I think that was probably also atleast a partial political decision. Granted I think Kwan probably deserved to win the LP even with a totally subpar LP with Cohen's last fall, but Kwan 100% should have been 4th in the long behind Nikodinov. It would have been kind of stupid to send either an unproven 14 year old (Hughes) or a junior skater who might not even be able to compete at Senior Worlds (and who ended up coming 6th at Junior Worlds) as the U.S Champion over Kwan though, and would majorly have sunk her status internationally, so would have been kind of dumb even if it is the result that probably should have happened.
One thing for sure, Kwan is sure super lucky she didnt skate like that at worlds. She would have been about 6th or 7th in the short, 4th in the long (behind Gusmeroli) and probably not even medaled even with Gusmeroli's Q round bomb, never mind being even close to winning.
I am Canadian and some cases I can think of where they protected their own interests:
-2016 Nationals pairs. Sequin & Bilodeau were on fire and Duhamel & Radford skated pretty badly with some major errors. The judges still held D&R on PCS and made them easy winners.
-2003 Nationals mens. Sandhu skated subpar in all arounds but was gifted the title, as he was still seen the big Canadian hope at that point. Andreev skated lights out and clean in the long with a quad, and didnt even make the 2 person team, finishing 3rd behind Sandhu and Buttle. The top 3 really should have finished in reverse order with Andreev 1st and Sandhu 3rd.
-2007 Nationals ladies. Rochette skated like rubbish with 2 or 3 triples done out of 7 and Mira was clean with 7 triples. Even as inferior Mira is in basic skating, quality of elements, and nearly every aspect other than spins and spirals, she really should have beaten Joannie here, but that would have been a potential death blow to Joannie's future career so didnt happen of course.
-1990 Canadians men. Browning skated godawful and still won over baby Stojko who skated cleanly with 8 triples. While the rest of Stojko's skating was fairly juniorish at this point, Browning managing only 3 triples or so and missing over half his jump tries still should have gone down to defeat. Browning might have never won another World title if he had lost here though.
-1993 Canadians dance. Bourne & Kraatz did not deserve the title this year, they should have been 3rd but the CSA already had deemed them their big future hopes so dumped 2 veteran journeyteams Petr & Janoshak and Mann & Noria, who both retired immediately due to the result, and gifted them a premature title.
Those are just the more blatant examples I can think of, there are many more.