This is a really hard thing to bring up. I want to sugarcoat this as much as possible, because I'm running the risk of flamebait. Maybe it's better we don't think about this, but as a community perhaps it's something we have to face. I don't know, but for better or worse here it goes...
Does a user voting this up become smarter or dumber in the eyes of the algorithm?
I have the impression that Paul Graham hasn't implemented that algorithm yet and/or turned it on because the community hasn't yet degenerated enough. I can't find the specific post where he said that.
That's true. On the other hand, when I do turn it on, it will apply retroactively.
As for the question of what effect this story has, that depends on what the editors think. Probably they'd be split on it. This is arguably an Internet story as much as a political one.
Does a user voting this up become smarter or dumber in the eyes of the algorithm?
What does the answer to this question mean?