I think this is a very wise and mature way to deal with the situation. You're not being oversensitive in the least and I'm glad you've spoken with at least one other list moderator.
I for one, have never urged Doug to boot anybody. When Rakesh what's-his-name was taunting me repeatedly Doug booted him - but perhaps it wasn't because of that. In response to a post-boot Rakesh e-mail (which contained more taunting oddly enough), I told him that I didn't think he should have been booted, but it's Doug's baby and he should be able to nix anybody he likes without having any qualms about it. And if someone does't like it, tough shit, go start your own list. I'm serious.
I think it's entertaining to have assholes floating about the place, but this list wouldn't exist were it not for Doug and LBO and he shouldn't have to put up with any shit over it.
Peter