Will read everything, promise. And will edit this later. But something, real quick:
If i find the post, i'll link it here, but: I remember a mention that Fern always been an asshole. No traumatic event, no dark past, no... nothing. He's just an asshole because he can be one.
This doesn't make your post invalid or anything, far from it. I just wanted to mention that.
EDIT:
To an extent, but not... exactly. IIRC, Elizabeth was his sister, and she could be saved with the controversial electroshock therapy. Unfortunately, the use of such methods were not allowed. It's the reason why Dr. Sigmund is so keen with the "shock therapy".
As for "death to fern or riot" thing, i'm not going to comment. To quote (In a way) Secundum: "Fern's "apparitions" were so sporadic, that i actually forgot he even existed for a while."
I always took the people wanting to kill Fern as a joke, but this is certainly... different.