Ed left Wham-O when he started DGA. So far as I know there was never any overlap where he was running the PDGA and still a V.P. at Wham-O. He had a tight connection to Wham-O and the IFA, and Wham-O was the corporate cash cow that was going to pump the money into disc golf to make the whole thing work. The official disc golf history line is that Ed left Wham-O because he was that sold on disc golf, but Wham-O was a huge part of the picture in the DGA-controlled PDGA. Ed put the screws to Dynamic/Destiny Discs and anybody else that popped up making golf discs because he was protecting Wham-O. He had to to keep the Wham-O money flowing.
Then all of a sudden DGA had the Kitty Hawk series to replace the Midnight Flyer series. The Kitty Hawk series was not molded by Wham-O like the Midnight Flyers had been. All of this stuff happened at about the same time: DGA stops selling re-branded Wham-O Frisbees, Innova patents a new golf disc design that is not rulled illegal by the PDGA, Wham-O sells to Kransco, the IFA is folded, Ed turns the PDGA over to the players...It all happened from '82-'83 except for the official turnover of the PDGA to the players, which from what I understand happened a few years later because Ed agreed to run the PDGA for a few years to allow the players to get organized and have a smooth transition. The key thing that drove all those changes was the Kansco buyout of Wham-O.
As for stuff like why Ed designed a disc golf basket, I don't really know. The line has always been that he wanted a target you could throw at from all sides like a tree, but would hold a disc so you wouldn't be squinting from the tee wondering "Did it hit the target or just below the target?" like you get at an object course.
I've never heard of a PDGO. There was a letter sent to Ed from a players group making demands, and his response letter is out there if you look for it. So there was a group of players that wanted the PDGA to be something different, but they didn't have Wham-O money propping them up and Ed wasn't going to help them get that. They may have run some events, but nothing on the scale Ed was doing with the PDGA. The funny thing about the letter is that the demands the players were making then are more-or-less the PDGA we have now. They wanted it to be a player-run organization and it is.