Yes, it is possible. The server sends like every message you'd see as you were ingame through InSim, thus making it possible to read all the chat going on, as well as messages (votes, pits, other messages...).
Also it is possible to chat back as the "host". Where "host" is the actual "PlayerName" in the cfg.txt of the server (not the HostName) iirc. A utility would also be able to change a wide variety of server settings (e.g. kick/ban, restart, end race, change track, laps, ...).
...anyway, didn't laugh about your thread at all :P