Williams told the Lancashire Telegraph that too many matches at the top level are being ruined by needless red cards like the one Dunn received at Old Trafford, and he believes a shake-up of the disciplinary system is needed to ensure fans get greater value for money.
"It wasn't a case of serious foul play or bad sportsmanship, they were just two fairly innocuous-looking fouls.
"In this instance, I don't believe the punishment fits the crime because we not only lost David Dunn for the best part of 45 minutes against Manchester United on Sunday, he's now suspended from our next game as well, and that just doesn't feel right to me."
Williams said: "I guess Chris Foy will argue they were both fouls but I thought it was a bit harsh to send him off.
"As a spectacle, it killed the game totally dead from then onwards.
"United had the majority of possession after that and as our players got frustrated, it led to a couple more cards.
"There was seventy-odd thousand people in Old Trafford and I just think the vast majority would prefer to have seen eleven versus eleven.
"If we had a sin-bin, where players could be sent to cool off for period, I think it would actually add something to the game, a bit like the power-play does in ice-hockey."