To be honest, I don't think most people really care about Ned or whoever/whatever except those who think they're "oh, look at me, I figured it out and I'm so awesome." There is no doubt that Ned is fake, though. With that said, just sit back, enjoy it and WHY ISN'T NED ON UNCENSORED MEDIA!?!?!?!?!?!?
Im not saying you are, but that's what the troll factor seems to be.
I don't think the real "old guy" is the father in law, however.
HOWEVER... I did hear a story once upon a time how Ned was created when BTLS and another host elsewhere had an idea to who could keep the charade of a fake character up longer.
Ned is just a way for them to say stuff more off-color and more un-PC than they nornally would. (Think Billy West or Gary Puppet.)