I've been a long time CAGCast listener, and fan of Wombat and CheapyD. I've never really found anything Wombat said as particularly mean, but the Penny Arcady bashing I did find a little borderline.
I understand that Wombat wants a physical copy of his games, and spending 20 bucks on a download for the XBLA might be too much, but rather than express his opinion on the matter it felt like he was completely throwing the idea to the curb and condemning it and anyone that might be interested. Wombat really needs to understand that there are millions of people that are perfectly okay with the digital distribution model, as Steam and Gametap have demonstrated.
Plus he completely knocks the game as a "flash game" when really no one knows that much about it. It might very well be a deep RPG with a lengthy play-time, and the episodic approach is a way of simply advancing the story in bite-sized chunks. Of course, Wombat could be completely right. Who knows. It's also pretty important to not view this as the "Penny Arcade Guys' Game" and as the developer's, who undoubtedly had a big say in the distribution model. That's not to say they deserve no credit and are free from blame, but it's like blaming Will Wright because The Sims has turned into a doll-house instead of a complex strategy game (which I would argue it originally was).
Anyways, I just thought it was something that had to be said, and won't change how I feel about Wombat, Cheapy, or the show. Keep up the great work, and keep on reading the cagbag for more outrage and insults from us, your devoted fans