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Krank didn't leave because of two people messing around, in fact, their forum would still be here if Krank didn't already have a support forum of their own. Chris has repeated this multiple times in various threads but for some reason it's not getting through.
As far as the avatars and sigs, let me just say that personally, I have avatars and sig images turned off because I saw too many that I didn't want on my monitor. I'm leaving it up to the other mods to choose what is and is not acceptable for those because my opinion of "too much" is different than theirs.
I think this whole thing has been blown out of proportion but as you said, I guess it needs to be aired out.