I think Denton's a parasite, but they forced Hogan to be accountable for something he should not have done like a tasteless Wikileaks. A nicer and more ethical Gawker could have been a good thing, were it allowed to survive and change.
I don't think it matters Thiel funded it, I don't really see how that's different to a high profile lawyer volunteering or expecting Apple, Google etc to step in when Lodsys were being parasites the other year etc. The EFF funds plenty of stuff too I think. If the consequences were survivable or Hogan lost would anyone have cared Thiel backed it?