I want to think about this a little more, but there is another aspect to this situation that I think should be considered: the involvement of Hobbits in starting the trouble. If not for Hobbits like Lotho and Ted Sandyman, would the ruffians have gotten a foothold in Shire doings to begin with? Even before Saruman became directly involved -- indeed, even before Frodo left Bag End with the Ring -- there were Hobbits already interested in "improving" the Shire for their own benefit, and profit. Gandalf was not responsible for their attitudes and actions; even if he felt strongly about these things, all he could really do within the parameters of his mission would be to advise them against such courses of action. Saruman alone was not responsible for the ruin of the Shire; indeed, without the all too willing cooperation of corruptible Men and Hobbits, I doubt he would have succeeded quite so well.
Must think more. After I finish my Christmas dessert.