...are told the resolution, and then say “Huh. OK, if you say so.”
Adding punctuation helps:
John, while James had had "had", had had "had had"; "had had" had had more fun.
Adding punctuation helps:
John, while James had had "had", had had "had had"; "had had" had had more fun.
Just because something can be parsed does NOT make it good English. The whole purpose of language is to communicate - if it cannot be understood without parsing it is not correct.
Of course, the examples are not supposed to communicate, but to be entertaining, which is a different function.
pvg points out below (http://news.ycombinator.com/item?id=1097310) that my source had a nonsensical ending; the actual ending makes a bit more sense.