Their issues was more than just backing McGillis. Not that they were villains, they just weren't heroes. Like Gaelio.
It was continuing the cycle of violence and corruption when they had every chance to preemptively stop. They instead decided to get drunk off their own power and capabilities and like McGillis, became an example for what happens when someone overestimates their force in a quest for strength.
They've continually made the wrong investments, despite others like Naze, giving them a pathway for success. Brash, hot blooded youths who thought they were above and could beat the system, ended up being played and reaped what they sow. Outside of McGillis and Tekkadan, there are countless instances of characters who defined themselves as brute force, or might, overestimate their capabilities and end up paying for it.
Also for those wondering the easter egg in this episode was Haro.