I really don't know why the towns people were worried, but it looks like his minions already took care of the problem. Just to make sure he didn't cause any more trouble I showed him a painful death by Eye Lasers over the next half hour.
Epic-level trolling by our mighty god, RNGeesus. Unfortunately, this would never happen to Vlad Digula, because he has his own throne room.
Same thing happened to me once, only he blinked there instead of starting there. I had to backtrack a couple of floors to buy enough throwing weapons to kill him with.
Why not making Lord Dredmor personal room, with all that furniture, maybe bodyguards (Arch Diggles/Red Mummies, depends of RotG off/on), and it's own soundtrack? It's the dungeon lord, and the final boss, after all. He could still be put on random zones, but as a room, not a single monster which basically could be everything else, and the game would not make differences (aside from stats and being able to see credits after killing it). If Digula has one, I strongly ask a throne/study room for Dredmor. He's even making plans to destroy the world.
Hey, you don't mess with the Diggle union. They will put you in a cell for violating workdiggle's comp and unpaid overtime. Also embezzlement. Not even Dredmor is safe.