James has earned his place as internet royalty by staying on message, treating people with respect and avoiding TDS. It's just sad he's taken a passion project that he's long-since tired of and hired bosses for himself - and the half-assed corporate culture got rid of the DIY, friends-having-fun aesthetic. The situation reminds me of when a rock band gets rid of their old manager in exchange for a corporate stooge, isolating the talent of the band from its heart and causing its downfall.
As for the dad band, if he wanted to live out his rock star dream he should have formed a group with Kyle Justin and the like. They would still have sucked but at least it would be fun, new and, people would actually want to watch. Rex just seems like corporate rock: interchangeable musicians playing to a captive audience there to see something else. Each band member seems to have their own part of the stage as opposed to working as a team.
James needs time, James needs money. He peaked with the movie and knows his fate is forever intertwined with the Nerd. He considers this his day job and has turned it into a corporate grind: going through the motions of the "small" episodes where he reads off a teleprompter to fixed-angle cameras so he has time to make the "big" episodes which he has some interest in. I say he should sell the IP before he runs it into the ground, or at least switch to animation for a while so he can outsource much more of the project - while being inspired by solving fresh challengers..
He's not a lolcow, he's just a salaryman.