In that case, why worry about having a chat at all? And then why try to hold events in a shoutbox? That makes no sense to me.
The shoutbox lags when a certain amount of people are in it. They've known this since the day the forum opened...
I don't think they should go out and spend a lot of money on a chatbox, but there are some free ones that don't use up much space and can accommodate enough users. For example, the one OVMKF had. You really don't have to worry about moderation issues if you find a chatbox that integrates well with vB.
I think it's good they decided to try something new out, but it's not going to work in a shoutbox. And if having a real chatbox isn't an option, then I don't think it'll work at all, to be honest.
So I agree with you, but I also agree with Andrew; I just think they need to look at other options. I've been saying this forever.