At this point I think the winning move is rolling with it and selling little plush basilisks as a MIRI fundraiser. It's our involuntary mascot, and we might as well 'reclaim' it in the social justice sense.

Then every time someone brings up "Less Wrong is terrified of the basilisk" we can just be like "Yes! Yes we are! Would you like to buy a plush one?" and everyone will appreciate our ability to laugh at ourselves, and they'll go back to whatever they were doing.