I don't see why .xorxes. is being asked to explain himself. Translation is not an easy task, especially with works of art.
The rules for written Lojban are extremely loose and very simple. Regarding specifically your issue with capitalization, Lojban /doesn't care/ about it except for marking non-penultimate stress; {krefu}, {KREfu}, {KREFU}, etc. are the same word. Using capitalization for visual purposes that do not affect the meaning of the text grammatically or semantically are not "clearly against the rules" for the simple reason that the rules don't have anything to say on the matter, and they shouldn't. Further, with the recent in comparison to the writing of la.alis. use of accents instead of capitals to mark non-standard stress, the case of lerfu is made nearly irrelevant where jbogerna is concerned.
.xorxes. was and is well within his artistic license in making la.alis.. If you have disagreements as to his artistic choices, you're more than welcome to make your own translation.