Wow.
I've worked under 2 publishers. The current one I'm actually quite fond of. He's made some tough personnel calls, but he's pretty open about budgets and what the company is trying to accomplish. I see him around the office just about every day.
The other guy I probably saw once or twice a year. He was utterly clueless. Did a lot of damage that the current guy has to deal with.
But, man, NOTHING like the guy you're working under. Not to mention, as ME you're dealing with him constantly, I'm sure. I agree, let him run his awful editorials. Just consult your lawyers, keep written documents saying you strongly advised against it, make sure his name is on the editorials and let him ruin himself.