Personally, I think that this thread highlights the underlying need for a clear and concise posting guideline/rules of the forum or other such document.
For me, there are a couple of issues that were raised in this thread and I think that they can be cleared up pretty easily.
I believe that the general "less moderated" approach that MannDude takes is appropriate, especially in deciding what content to allow. This should be codified somewhere on the site, with a clear delineation of what is and what is not appropriate.
I think that topics that are controversial or disagreeable in some way should definitely be allowed. Trying to silence those topics starts to create an echo-chamber of only like-minded posts, which is not conducive to real discussion and a safe place to express opinion. Topics that draw discussion should be encouraged.
Posts should only be removed if they blatantly go against whatever rules MannDude establishes (illegal, pornographic, blatant trolling, ad-homs, whatever). Other than a few things that have come close to ad-homs here, I don't really see any issues in this thread. People disagree, so what?
The other issues I believe are because too many threads were created for the same topic. This should also be addressed by creating a rule, and describing clearly what the moderation policy is as a result.
MannDude, you asked earlier in this thread for some advice on what to do. I'll answer in a way that's probably more specific than you asked for. I don't expect you to follow exactly what I advise, but this is what I would do if I was in your shoes.
You've got a bit of a mess on your hands. For the mean time, I would leave the threads a lone. Don't lock them, move them or merge them.
Develop your posting guidelines/rules. Post them in a transparent and public way. Don't ask the community to create them for you, but do listen to feedback. Include a rule that would address the situation at hand, which is to me an issue of too many threads on the same topic.
Approach Buffaloed and let him know that you will, as a result of the posting guidelines, be locking all the offending threads. Allow him an opportunity to create a limited number of threads that you believe appropriate. Let him organize and lead the discussion he wants instead of burying or merging the threads in a way that would kill the discussion.
Once the thread(s) are created, lock all the previous threads with a clear moderation message that points to the specific rules they broke and also link to the new appropriate discussion thread(s).
I don't think that this community can currently sustain a forum that is dedicated to this type of topic. I think the forums the threads are in now are appropriate.
This community is growing, and there will be some pains. You've got a mess on your hands and you've got to do something. Leaving it alone will result in more threads like this one, but burying the discussion will turn many people away. No matter what you do, some people won't be happy. Find a good balance, set clear rules and be transparent. By the way you handled the ad discussion, I trust that you'll do well here.
The community needs some structure to grow properly. Put them in place before things become unweildly. Do it properly and you'll end up with a thriving, open and active community.
Edit: Cleared things up a bit.