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.
The son thought of past poverty, outlook humble, now having from father a treasure harvest, also father's house, all his wealth. Great joy - to have what was never before had.
Τῆς πατρῴας, δόξης σου, ἀποσκιρτήσας ἀφρόνως, ἐν κακοῖς ἐσκόρπισα, ὅν μοι παρέδωκας πλοῦτον· ὅθεν σοι τὴν τοῦ Ἀσώτου, φωνὴν κραυγάζω· Ἥμαρτον ἐνώπιόν σου Πάτερ οἰκτίρμον, δέξαι με μετανοοῦντα, καὶ ποίησόν με, ὡς ἕνα τῶν μισθίων σου.
Your fatherly due I withheld unthinking, in evil I wasted your wealth; a prodigal cries, "I've erred, father, receive the repentant as serf."
妙法蓮華經 Κοντάκιον τοῦ Ἀσώτου