Little girls aren't hot. Not to normal people, anyway.

Mentioning seeing a "hot little girl" who is also a "kid" isn't incriminating? Maybe there's nothing immediately legally-actionable about it, but Wheel of Fortune was absolutely right to give him the ol' heave-ho over it. Best case (for them), it's the grossest sentence ever written. Worst case, there's about to be an investigation that will land him in jail for the rest of his life. Either way, firing him is a reasonable consequence for being odious.

Even in the incredibly unlikely scenario that was written by a child, why is this grown man participating in the conversation?

Come on, have some common sense. It's quite obvious what's happening here. This is also not the only relevant piece of the transcript.