While I have no personal attachment to Woods, I tend to think of ideas like this in terms of their cumulative value. Woods writes a book on Nullification, which spurs others to refine their ideas on nullification, countering some arguments and expanding on others (as you have), and then they write their own books. Usually when ideas like this are explored, it's always the first guy out of the gate who gets all the abuse from both sides, then there others who'll say, "Yes, but..." and pretty soon, the arguments on the subject are mainstreamed and discussed rationally.
I give Woods credit for being the first one out of the gate to take the heat -- because he not only has to deal with people who have legitimate arguments about his work -- but he also has to deal with the others who are just repeating the propaganda that they learned in high school against him -- in short, "the zombies". I can imagine getting hit on all sides like that would probably make one very defensive, in fact overly defensive, even if they aren't a narcissist by nature.
Good point. I've spent enough time on the LewRockwell.com site to lose respect for Woods and his gang, but you may be right.