Re: folding bottom set
Turtle did play the hand poorly, just not terribly, until he folded the turn, that is. Donkey's hand was just screaming KJ, or 88. This is exactly what most decent hand readers would conclude from your description as well.
As to the table thinking Turtle made a great fold on his QT read, you really need to understand just how good this is for you. It says that they either didn't know Fish had QT, or that they didn't believe their own read. It also means that no one had the first clue as to what the donkey had.