You stole the words right out of my mouth. The funniest part - by far - was on pages 304-305. I think he knew the reader would be saying, "You know, these Mike Perry digs are rather tedious. Larry's kind of a douchebag." So in order to combat that he made a lame attempt at connecting with the reader by implying "I know what you're thinking, but look at this Hugh Hixon moment! I totally did not make this up."
But let me just clarify: hearsay is the report of another person's words by witness, and yes, that is usually disallowed as evidence in a court of law. With that in mind, not all of LJ's audio - technically speaking - is hearsay. Still, though, I think you're right: I'm doubtful the court will give a shit anyways. The key is whether Alcor members will care, but I don't see any movement in that regard either