That's what I'm thinking--that man is the source of all the evil (Goma, as copycat slugger put it), and either Lil' Slugger is real and is trying to free the people from their misery, or he is a product of mass hysteria and a psychological device used by the people involved to free themselves of such unbearable torment. It is very mysterious now that we know that the old homeless woman didn't see anyone else the night Tsukiko Sagi was attacked.
And the show is incredible, Kura; that is, if you enjoy a good horror anime. Believe me, not every episode is as...erm...explicit as the episode you saw where Hiromi Chono was attacked. The episodes are usually very low-key and highly enthralling. I highly recommend it.