This theory doesn't explain 1) why nobody else knew about it before now 2) why it's supposed to be so sinister as a revelation 3) why it's NOT tentacle time, but it DOES continue to paint King DJ as a racist, so in DD:OfH thats probably enough for it to get by.
On the other hand; a magnificently powerful
psykerArchmage ascends to ultimate power ands bans mutants, heretics and xenosnon-humans from his burgeoning empire... I'm almost kinda hoping that DJ renames himself 'the Emperor' of Callan and going on some sort of crusade. Possibly starting with the Orks on Marsthe orcs in Maltak.
I would forgive Mookie ever-so-much if this were the case....