Judging a series of events by just one is... Watching FOX News much?
What I continue to find the most amusing is how you people still think it was about Valde. The GM did not intervene for any of us. As he didn't, and following your logic, we were not pwned.
I can say that the ending was going to be far more amusing, but I changed my mind. Maybe it was a mistake, maybe it was not; but it isn't an irremediable action.
Removing Feds would precisely do the opposite. It would increase social interaction and turn the game more amiable. It's all explained in direct democracy, Perfect Competition Market and small communities' behaviors theories. The flaws of the PCM, however, apply, and feds become a necessary evil - either that or divine intervention. It is also limited in scalability. Even so, I can't leave them as they are, as they don't fit their end.
It's not W3C's board of directors, so to you people it says nothing. What it speaks is behavioral analysis.