IMO, Jim and the mods do amazingly well balancing between anarchy and censorship. The thread my quote came from was initiated by Jim in response to complaints by others outside FR that he was too controlling. On the other hand, Sean was saying just the opposite -- flame wars have led to the decline of FR in his eyes. For myself (and I suspect a majority of FReepers), I'm not unhappy with the mix of freedom and control demonstrated here.
I agree 100%.