It's good to be careful and want to do one's job well. But (almost) nobody is irreplaceable, and documentation is key. (What if Childs had been hit by a bus?). Without documentation he had no way to prove his case; and even with it it's awfully close to the line.
I do think that if it got to the point that he didn't trust his bosses or colleagues, then he should have found another job for his own sake.
At least it will be over for him soon. Whether he'll be able to find a position that can use his expertise (especially in this economy) is another question though...
Cheers,
Scott.