This is not the point. Hulk Hogan is entirely moot to the issue at hand.
Hogan's case was just a vehicle for Thiel's goal of getting back at a company who had written articles that he disliked. What Thiel did was to tell people with deep enough pockets to see that it's possible to destroy someone for writing articles that they disagree with. The case was structured to ensure that Gawker could not rely on insurance for paying certain damages and that people became personally liable for the damages arising from the case[1].
So, imagine that Warren Buffet dislikes an expose in the Chicago Tribune about him. He then waits for someone to have a grievance against them and then tells that person that he'll provide all the financial resources to drag this case on for years and refuse to settle or repeatedly finds various proxy parties and repeats this behavior. Tronc is then forced to sell assets to keep afloat while dealing with this litigation.
Thiel's behavior shows this works and that most people seem okay with it. That's the problem.
[1]https://www.nytimes.com/2016/08/02/business/media/nick-dento...