Perhaps it has something to do with people not liking the current "deity" choices and not finding them interesting or fun?
The difference between everyone wanting to create their own non-official religion, worshiping spatulas and the Crystal is that the Crystal is already an integral part of the settings, not a newly created non-official lore. It's a central piece, around which everything revolves in Yliakum. People need it, the current lesser PlaneShift "gods" need it too.
I wouldn't expect any religion to just "slide by" anything. But why should it stop anyone? Black Flame is already outlawed. Doesn't it already partially stand for insanity (according to the description)? If the followers are laughed at, they can laugh back. If someone proposes something that doesn't sit well with some bloated "octarchy", they immediately get labeled as "crazies"? The crazier the better then!
And Raa, the real question is - are those
magic spatulas? If so, your friend might be onto something.

I'm also wondering about something from the official settings on the web site:
They were unaware of a huge maze of tunnels present in the crust of the world, later called the Stone Labyrinths, where other creatures were already lurking in the dark.
Something had to have created those creatures. Someone or something had to have built the Stone Labyrinths, which implies a higher intelligence than simple animals.
After many generations of the Lemur had passed, Laanx wandered into a cave that was hundreds of times bigger than the one he created, where beings without a name dwelt.
What are those "beings without a name"? Obviously, neither Laanx nor Talad created them but someone or something did. Is this referring to a humanoid race of some sort? Something had to support their life too. The "cave" seems to be referring to a place, which later hosts the ten towns of Kadaikos.
Also...
Therefore, they used their powers to enlarge the niche and created the huge cave comprised of eight levels.
Was the "niche" even big enough to host a previous civilization? Because the inhabitants come across some ancient ruins in PlaneShift with structures built by a previous civilization.
Was the previous civilization without a "deity"? Laanx and Talad weren't there, so that leaves... Xiosia, Dakkru, possibly Black Flame (unless it's really a part of Laanx) and... the Crystal! The ruins don't look particularly menacing to me... Were they all Xiosia worshiping hippies?
Something to think about...
