The reason we hold football clubs to higher standards is because of our emotional connection to them. It was mostly Liverpool fans who were clamouring for this decision to be overturned.
John Henry, the owner, is widely perceived as one of the good guys (relatively, for a hedge-fund billionaire). Peter Moore, the chief exec, is a boyhood Liverpool fan, 'one of us'. So Liverpool fans felt betrayed by this action that they felt didn't represent their values. Newcastle fans don't quite have the same relationship with their owner.
The initial decision won't have been taken lightly, and probably was made with expectation of some backlash (given the public reaction to Spurs and Newcastle doing the same). But maybe they didn't anticipate the level of the backlash.
I have mixed feelings about it. Even though Liverpool are one of the world's richest clubs, this situation will be hitting them hard financially, and there will be lasting effects on the business side of things. So I didn't feel quite so strongly as some people about their decision to use the furlough scheme. We also don't know what other measures have been taken - I'm assuming that like many other companies, the board have taken significant pay cuts themselves, they just haven't publicised the fact (and nor should they - they can afford to take the hit so it's nothing to congratulate them for).
But I am glad that they have backtracked and done what is perceived to be the decent thing, and been big enough to make an unequivocal apology for it.
In the long term, I'm hoping this terrible situation forces the whole football industry to recalibrate its values. But I'm not going to hold my breath waiting for that to happen.