Actually, he was introduced even earlier than "Episode 13" (AKA "Demons"). He was actually introduced in S02E02/"Coma"/"Episode 9". Albert reveals information about Earle to Cooper. This episode was written by Harley Peyton (who would go on to do a lot in season two) and directed by David Lynch. I don't know who came up with Earle from the start, but it's clear that the writing and direction intended him to factor in from pretty early on.
> the Windom Earle Character, who later was basically ignored by Lynch for the Return.
I'm not sure he was ignored so much as he was unnecessary. If you saw the conclusion to season two, it's pretty clear Earle's story ended. Sure, he could've been mentioned or brought back (because no one really goes away in Peaks), but why?
> So whats the matter? Rather than abandoning Twin Peaks he wrote himself into the Show and even appeared in it even after the shows most controversial parts had been aired (Justice Wheeler, and Evelyn Marsh ).
A few things here. I don't know if it's that he wrote himself in or that the writers actually writing the bulk of middle season two used his character, and he agreed to come in and actually act. But either way, I'm glad he was around.
Regarding the more controversial parts, according to people from those parts like Annette McCarthy (Evelyn Marsh), although she did not meet Lynch, he was still approving casting and plot lines (see Dukes' book <em>Reflections</em>). So it sounds like he was at least generally aware of what was going on.
This is why it grinds my gears that, despite anyone's opinions on latter season two, Lynch came out just before season three and talked shit about it. I understand ABC meddled and that really sucked, but rather than sticking around and helping out more, he basically took his ball and went home, then shit on the work of people he abandoned 25 years ago. I know this is a controversial opinion, but hear me out. We know he wasn't gone working on Wild at Heart because that movie had hit theaters before season two began airing. We know he was approving plots and casting. We know he was acting in the season. So if he really felt things were crappy, why didn't he do anything about it? In interviews, Harley Peyton (who basically ran this section of the series) has stated that Lynch almost never spoke to him after the killer reveal.