Closing that thread wasn't the smartest thing to do for the reasons already mentioned here. - Staying involved in it and warning people about possible issues and consequences was the perfect way to handle the situation. Period.

As for Texrat resigning:
I support him doing so if he really wants it. It would be too easy to say 'Please stay!'.... I first thought that would express my emotional support, but wouldn't it mean "Oh please, continue to work for me without getting anything in return, because, frankly, I'm too lazy and don't care enough to do this job myself"?

Do what feels good and right for you now; no peer pressure, no expectations. Just be sure you'll be welcome as a moderator should you want to return, be it tomorrow or in 5 years.