Warning, essay incoming. This is my own opinion and may not necessarily represent that of Arcane or its sponsors.
That’s exactly right, you were provoking him. Trolling him. You certainly got a reaction, eh?
Now, before I continue, let me just say: sometimes my chat gets… less than professional. Sure, I’ll admit it. I’ve chuckled in public chat when a new player gets the “Getting Wood” achievement. Most of the people on the server are fine with it, expressing their own amusement in chat. I’ve never seen anybody complain about the occasional joke in bad taste. DClem’s right, nobody cares that much. Here’s the thing, though:
This wasn’t about the joke. It’s about sending a message. joker.gif No, really.
I don’t have the chat logs, so I have to listen to both sides of the story and decide my opinion from that. As I understand it, Agent posted the rule changes here on the forums, then brought them up in private with DClem on the server. Makes sense, mods should be given a heads-up on things like this. Agent told DClem that he wants mods to give a certain impression when they speak; basically, Agent believes that it’s off-putting to new players to see dick jokes and the like coming from a mod when they first join. I get that. Even a ‘mature’ new player might be worried about playing on a server where even the mods sound like they should be in school this time of day.
When I stay up late on the server on quiet nights, I see a huge increase in the amount of off-color or even outright inappropriate jokes. I’m not going to blame anyone, we’ve all got our gremlins. I just try to make sure people know how to rein themselves in. There’s only so many bad jokes I can take before they stop being funny.
Anyway, I’m getting off-course. Agent has a certain image of how mods should behave. DClem has a different view. We can talk this out, right? No need to go full Jacobin here, we (as mods and players) can explain our concerns and Agent can explain his reasoning. Obviously, that didn’t happen. What did happen, was that Agent asked DClem to not make dick jokes, and DClem responds (in public chat) by making a dick joke. Oh boy, here we go. The argument that started lasted over an hour, most of which I was there for. Neither side really made any progress, until finally Agent and Jugglingman decided to demod DClem, and actually temp-banned him too.
I honestly didn’t want it to come to that. It shouldn’t have come to that, but it did. It hurts me to say it, but Agent did the right thing. Making a dick joke isn’t the issue here, I’ll say it again. The issue here is that Agent, the admin, made a request, a very reasonable one (to me), and DClem purposely went against it. We’ve banned normal users for ignoring admin requests, there’s a precedent for this. I’m not saying you have to do everything an admin says, but really, it wasn’t even that big of a request. DClem’s a great member of the community because of how friendly he is in chat, it’s part of the reason he got accepted as a moderator. He could have accepted Agent’s request, gone about his business and written up a post on the forums expressing his concern (which he did).
Damn, I wrote way too much. I have opinions on the internet, deal with it. 
TL;DR: DClem got demoted for disobeying an admin, not for making a joke. Civil disobedience is fine, but don’t complain about being arrested.