It's not that hard. DG is using 'the Rational Wiki community' for 'we', 'your' refers to 'the LessWrong community', and 'distressed children' presumably refers to Dmytry, XiXi and by now, probably some others.
No, "distressed children" refers to people upset by the basilisk who feel they can't talk about it on LW so they email us, presumably as the only people on the Internet bothering to talk about LW. This was somewhat surprising.
If it's worth saying, but not worth its own post, even in Discussion, it goes here.