But the contributions of Theosophists like Olcott to the spreading of the dhamma should be respected and lauded.
Not everyone who's promoted the spread of Buddhism should be respected and lauded, especially if ulterior motives were involved.
Like the Theosophists, the Nazis also promoted Buddhism, in their own distorted way, to bolster their racial and occultist beliefs:
https://studybuddhism.com/en/advanced-s ... -and-tibet
The Nazis thought Shambala was Thule. Cults are wont to believe all manner of delusion.
Even if theosophy promoted what has come to be understood as misunderstandings of Buddhism, some early members did indeed do a great service to the Dhamma, regardless of their other few, or many, perceived, rightly or wrongly, defects and shortfalls. I am sure they reaped the rewards of that. Whether or not that "counteracted" or "counterbalanced" X or Y action(s), true or alleged, I (and, IMO, "we") cannot say.
Like this is the uncreated, like this is that which is difficult to realize, with no moving, no bending, no dying. Utterly lacking secretions and smothered in the dark, it is the island shore. Where there is ferrying, it is the crossing. It is dependency's ceasing, it is the end of circulating transmissions. It is the exhaustion of the flame, it is the ending of the burning. Flowing openly, pure and cool, with secret subtlety, and calm occultation, lacking ailment, lacking owning, nirvāṇa.
Asaṁskṛtadharmasūtra, Sermon on the Uncreated Phenomenon, T99.224b7, Saṁyuktāgama 890