Going through the discussion over there, that seems to be exactly what happened. He established his role as the official court jester for Ars' founder Caesar, and that was that.
From my experience running a site/forum in the late '90s/early '00s, keeping control of the trollish elements of your community was really, really fucking hard. You didn't want to appear as too much of a hardass, because you wanted your community to thrive, but at the same time the looser you were with the rules the deeper a troll could embed themselves in your community. If things ever got too much and you tried to remove that "beloved" troll, all hell breaks loose within the community and people revolt. (Personally, that was the point where I said "fuck it", handed the reins to someone else, and washed my hands of the site and entire community.)
We never let the discourse get anywhere near as disgusting or edgy as it appears to have been at Ars, so we attracted mostly decent people (many of whom found success in the industry), but a friendly rival site of ours did... and wow, the real life dirty laundry that later came out of there.
Now again, this was all pretty much how things went with amateur sites, but when you got to the level that Ars achieved you'd think they'd try to keep things clean. It's like, IGN at the time was at a much higher level than our site, we had friends and connections with them, and they ran a very tight ship internally compared to us.