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RE: Insanity at it's finest...and a new round of negotiations.
Their reputation will go down the toilet
I highly doubt that. People will move on and the new coins will be listed, do you really that the world gives a shit about Steem? If we don't the right thing for our blockchain than no one will.
The world might not give a shit about Steem (yet) but they do give a shit if their funds is being used in a hostile way or worst if they cannot have access to it
People might not give a shit about Steem, BUT if we stand our ground and drive off the "invaders" we will have set a precedent of a decentralized system withstanding the onslaught of a large centralized governance takeover... might not help us but it could have some very positive long-term implications for the whole idea of "decentralization."