All of ya'll who aren't Markos can go about your knitting. All of ya'll who are Markos read on...
Dude, your policy of not allowing Moderators to nuke Diaries is generally admirable, and in the best traditions of free speech and allowing the airing of divergent viewpoints and all that happy shit, but it's time for a temporary rule change.
DailyKos has, as you know, become both a go-to site and a target as this election heads into the stretch, and shit like this is not merely being picked up by the likes of Falafel O'Reilly, but will increasingly make it's way into media where actual journalism happens, which is not to your benefit or that of the Democratic Party or Nominee.
I know that you are busy being famous and rich and can't possibly monitor every Diary that gets tossed up here, but I implore you to do the next best thing: loosen up on your chosen Moderators and empower them to nuke blatant shit like the example above. Require them to find something harmful rather than merely useless, insist that two of them agree on a nuking, impose whatever sensible restrictions may seem reasonable and prudent, but this site, and it's impact, has finally gotten bigger than even you.
Protect it, for what it can do.