@Captaininvictus
The moderation tool isn't necessarily a "You done fucked up now!" indicator. Mostly, it's used to simply hide posts that users who have the "hide moderated posts" toggled on. It's a way to keep people from complaining about the same posts over and over again as well as keep the number of reports low. Sometimes, if I feel like it's needed, I'll pair the moderation action with a post of my own. In this case, it was just a gentle suggestion. You're right, this was a silly slapfight that didn't really hurt anyone, but I took the opportunity to suggest that you both consider how to post with more substance in the future.
As for your example, it's staff's official stance that since characters don't have feelings to hurt, they're not subject to the rules. I would like to see this rule changed for the more outrageous and terrible things that users have said in the past but it hasn't happened yet.
As always, the rules and moderation team try to strike a balance between giving users freedom to say what they want with basic civility.