Yes, it smells like blackmail.....(just a guess but we know how HKS operates)
I don't think it is blackmail. I think it is all due to a general societal naivete. Perper is playing by the rules we all fundamentally ascribe to; Howie is playing by his own- largely, seduction and illusion (aka, hypnosis; aka, controlling the narrative).
Another seduction? Perper loves the stage. Whether he knows it or not. And he panders to it. IMO. Howie is glad to oblige and applaud.