Early versions of the product came without a power relay, with the implication being you should have the volume pot all the way down, and unplug your headphones before ever turning the amp on or off. That is fairly standard precaution with the higher end of audio equipment, which both Stoddard and Moffat came from. Not so much in the market that they were targeting with the Asgard.
Since then, they've added a relay to all of their amps that need one, and have offered to add one to any amp that was sold prior to this for free.
Stoddard goes over the incident with the Schiit side of the story at http://www.head-fi.org/t/701900/schiit-happened-the-story-of...
NWAvGuy wasn't actually banned for his interactions with Schiit, but due to the very strict advertising rules at Head-Fi. http://www.head-fi.org/t/584763/the-wizard-appreciation-thre...
The Asgard never actually permanently damaged or destroyed any headphones. The Schiit Lyr, however, did kill a $1.5k pair of Ultrasones Ed 8s, but this was due to an actual defect with a specific unit. Schiit replaced the Ultrasone and the Lyr for the owner.