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Manipulation always depends on the eye of the beholder. To me, "Dynasty" was manipulative since Day One because its hero was a homophobe who also was a rapist. Making his ex-wife the center of the show, later on, didn´t change that, all the opposite. The show wanted to show him as a goody-goody which he never was...
Well, his wife became the center of his world by season three.
As you say, it is in the eye of the beholder. For this viewer, season one Blake was portrayed very much as the Godfather of Colorado, and I don't consider the Godfather to be someone the audience is supposed to see as the moral center(Brando or Pacino). The season 1 episodes made it obvious that Steven was right and Blake was wrong. But the audience did need someone to voice their perspective, and the homophobic opinion was very much the nation's (nay, the world's) perspective in 1981.
Season 1 Dynasty did not have a simplistic morality like all shows on the air at the time. Characters had inexcusable behaviour and also more vulnerable moments. I think the way the show portrayed it through Blake and Steven was ground-breaking for 1981, and very, very gutsy. Al Corley's Steven was a revelation for gay people who watched the show. He certainly was for me, which probably made his season 2 sudden straightening/lobotomy such a slap in the face. You can certainly say that in the long run, Dynasty did do damage with the way they handled Steven, a co-effort by the writers AND Jack Coleman's own homophobia, but the season 1 episodes brought a gay man to be part of the core cast of a marquee show on a US television network.

