I really don't know all of the details on this situation, so perhaps this doesn't apply... but it does occur to me that often people don't realize they've crossed the line until somebody (maybe many somebodies, if they're stubborn) points it out to them.
i think that's true, but in this case i think he knew that he wasn't being honest the whole time... which is partly why he apologizes so profusely.
I don't agree, from the blog it makes it sound like it really became an arms race - he was more interested in 'winning' than in serving his users.
Once he was outed, he realized what he'd done and came to his senses.
Sometimes you need to be caught to realize the magnitude of what you've done.