^ My theory was that the Time Lord Council was growing tired with Lady President Romana's tactics in the war and felt that a more aggressive stance to defeat the Dalaks so they chose to depose Romana and resurrect Rassilon.
Your theory is definately in character with that the Time Lords we saw in The End of Time would do. And indeed I do like the idea that they foolishly started themselves down the path that would eventually lead to their extinction. It shows how truly twisted the Time Lords had become.
But I like to think they were simply desperate andout of this desperation, they made the unfortunate mistake of choosing the leader with the agenda that gets everyone killed. This makes things more tragic for the Time Lords (all they wanted was peace and it cost them their lives) and why I like this particular theory.
Dude, all but two of them voted to commit genocide against
everything else that had ever existed, ever. They were literally not only going to kill everything other than the Time Lords, they were going to destroy the entire fabric of time so as to prevent anything else from having ever existed in the past, too.
They didn't just want peace. They were just as murderous and genocidal as Rassilon.