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Considering it's his word against the parents and the testimony from both sides is problematic, I don't understand why a court never appointed a third party to act as her guardian.

First of all, that's not how it works. Florida law states that a guardian who "may have a conflict of interest" must be removed. The next of kin is then appointed guardian if they are capapble and not conflicted.

But that's moot, the Court of Appeals held that MS and the Schindlers will not decide Terri Schiavo's fate, the state will. It is about as eggregious an abuse of power as one could ever find in American jurisprudence.