Is Ephialtes going to stay: he may linger as a moderator for some time (assuming Badspot allows him to retain that position), but he will no longer be developing or maintaining anything related to Blockland.
Is Badspot mad: you're not going to get an answer to this from Badspot. I personally don't think he's mad, but he's probably irritated.
Does this mean anything for Blockland's future: RTB will no longer exist in any form and Ephialtes may stop moderating the forums. That's really it.