Absolutely. The project not only *will* thrive it *is* thriving. We're getting scandals every other week at the moment, and it doesn't seem to be hurting the project at all and I see no sign that it ever will.
Let it breed 'til it really kicks us in the nads, right? Or... hey, let's do something to prevent this sort of thing happening in the first place. I see only these two choices.
As the rest of the email you half-quoted said, plenty of things have been done and are being done to reduce the chances of problems like this happening in the future. There is a big difference between accepting that perfection is unattainable and not even trying to better ourselves.