I like Encyclopedia Dramatica very much. It would be an awful thing if everything on the net was in perfect good taste.
It is, as the site's name suggests, a repository of techniques for creating online drama, and by getting an outraged reaction it only goes to show how successful it is in this aim.
I think that familiarity with its contents can act as a vaccination against the kind of trolling it encourages: It becomes easier not to be affected by it when you recognise certain tropes and memes being repeated.
Besides, I'm very much in favour of freedom of expression and recognise that ED's outrageousness is very much an example of this principle.
And besides, it is often very very funny indeed.