>> in my opinion Dylan showed lack of experience as a performer in the way he handled the heckler, he must have been expecting some adverse reaction.   

Dylan had been a touring star for several years by the time of the live '66 tour. He always had a strange relationship with his audience, as the Halloween tapes clearly show, but inexperienced he was not. Tired and angry is probably a better description of his state of mind at that moment. Try watching the Don't Look Back concert recordings.

>> However Dylan achieved massive publicity from the incident.

No. The incident received zero coverage and was forgotten until the bootleg tapes scene made it famous.

Regarding Pete Seeger, he was fine with the music. He was angry with the sound quality which was overdriven, something which doesn't come through on the desk tape.

And there are several contenders for the identity of Judas. Butler is only one.