Well - and I say this, let it be well noted, with reference to Room 101 as it was when it was first set up, six months ago, not as it is just now - the facts are basically these:
The stuff that Jeff was trying gently to encourage people to post in here, as opposed to on the main board, was "bad" in the sense of the opposition "good and bad", not in the sense of the opposition "good and evil" (see Friedrich Nietzsche "On The Genealogy of Morals").
Crackyhouse had established over the years a reputation for dry, subtle humor and general high standards of wit and intelligence, but around the end of last year, Lia's fan-base were filling the main board with stuff that was just infantile and embarassing: petty "pwning and baiting" contests punctuated by truly atrocious sub-Crowleyan pseudo-mysticism stemming from an individual who called himself Caine (and who was the acknowledged hero and leading light of the Lia fan-club for a couple of weeks until, as tends to happen in elementary-school recreation yards, it suddenly became fashionable to start baiting him and the main board got clogged up with a hundred variations on the post "Caine is a pedo; pass it on".)
The Orwell reference was Jeff's typically gentle-hearted, subtle and reluctant acknowledgement of the unpleasant truth that Lia really had, for a while there, collected around herself a group of people that nobody in their right minds would ever want to be associated with: really, quite literally, "the worst thing in the world" - a bunch of boundlessly ignorant and uninspired, and yet relentlessly pretentious and self-righteous crypto-pedophiles who spent most of their time accusing each other (but never themselves) of being exactly that.
Thankfully, most of the individuals responsible for that seem to have drifted away now. Let's hope we've seen the last of them. But those are - or were - the facts of the matter.