I find your post very well thought through. I can understand the position of all the parties.
The biggest problem in my eyes that none of the parties know what they really want!

• on one hand you see JS who is worried about his investment and doesn't know whether there is a future at all fot his implication in this project.
• then we have a community that speaks with hundreds of voices. Many are ill informed or emotionals. Many have their own interests.

I believe that the first step for the parties would be to define what they really want. Without knowing this how can we negociate together?

Steem needs a protocol for decision making and this shouldn't be left to witnesses alone...