Jim Lahey's 'shit-moths' speech is actually about the liquor
During Season 2, Lahey's drinking problem started off... small, comparing to where he was in Season 7. His alcoholism was a shit-larvae, then in Season 3 it became a shit-a-pillar near the end of the season, and then come Season 4, he's trying to kill Ricky in the middle of downtown Dartmouth... "Shit-moths.". This realization came to me when I saw that during the shit-moths speech, he was gesturing to his liquor. The trailer park was originally a planned Utopian community
but than something went very, very wrong! Levi and Desiree died at some point between season 1 and 2
This would explain why the park was extremely littered during the season 2 premiere. Levi was shown to be in charge of waste management for Sunnyvale, so when he and Desiree died (either by a car crash or some other event), the park had no waste removal service and since Lahey was hitting the liquor hard around this time, he didn't bother hiring a replacement and allowed the park's garbage to pile up in the streets. Bubbles' first name is Robert
He mispronounced Bob/Robert as Bubbles as a child and, along with the bubble machine, the name stuck.