You’re one of my favourite websites, certainly one of the ones I visit the most, so it pains me to see you writhing in pain over this whole HD DVD key thing. If history has shown us anything though, its that sitting on your hands in a moment of crisis will do nothing but cause harm. Yes the comments have got immature, repetitive and just plain dumb, but you need to realise you’ve pissed off a whole lot of people by removing posts, banning people etc. Sitting on your high horse and waiting for everything to blow over will only expose more people to a Digg that is ruled by out of control teenagers.
One of the reasons I liked Digg is that its quality of articles and comments was generally on a slightly higher level than sights such as Slashdot. Take control now. Deleting posts and comments is NOT the way to do it, but make a comment. Make multiple comments! People see Digg (And Kevin Rose specifically) as being ‘one of them’, if you’re keeping them out of the loop then of course they’re going to get angry. Many feel that they helpded make Digg what is is so they see this as a form of betrayal.
I know you have legal issues to think about and I’m not saying that you should ignore them, but do something as reputations are hard to earn back, as are good news sites.