I was playing yesterday and someone did this 'trick' to lower both our threats to the starting level. I immediately took issue with him until he pointed out how the devs have ruled that this is valid.
What the hell is wrong with them? This is beyond stupid and ruins quests like Conflict at Carrock etc. How can you let them use Loargon to reset everyones threat like that. It should be once per game! Now you just pass him around and ignore threat for everyone.
I hope this is like the whole fiasco about attaching cards like Ancient Mathom to locations that are immune to card effects. One email from Caleb says its kosher (with a laughable explanation) that was then appropriately overturned in a FAQ.
Once again please overturn this stupidity.