I really don't have a handle on the situation, but the censored material has allegedly caused serious and lasting psychological stress to at least one person, and could easily be interpreted as an attempt to get gullible people to donate more to SIAI. I don't see any way out for an administrator of human-level intelligence.
AFAICT, the stresses seem to be largely confined to those in the close orbit of the Singularity Institute. Eliezer once said: "Beware lest Friendliness eat your soul". So: perhaps the associated pathology could be christened Singularity Fever - or something.
Some research says that lurkers make up over 90% of online groups. I suspect that Less Wrong has an even higher percentage of lurkers than other online communities.
Please post a comment in this thread saying "Hi." You can say more if you want, but just posting "Hi" is good for a guaranteed free point of karma.
Also see the introduction thread.