You are quite correct IMHO. The rules that have been provided are pretty vague, and that's probably never going to be completely solved either.
PAL certainly needs to be able to solve problems, and all communities do. The best solution to this particular problem is more communities IMHO. There are far worse mechanisms than what PAL has undertaken here, and more than communities are going to be necessary to enable actual freedom of speech to exist online, particularly mesh networks that enable people to reach the internet without being able to be cut off completely.
The solution to too much freedom is more freedom.
WARNING: IF YOU REPLY TO THIS ACCOUNT YOU WILL BE FLAGGED, YOUR REP HARMED AND ALL OF YOUR REWARDS REMOVED. DO NOT ENGAGE WITH THE TRASH. YOU HAVE BEEN WARNED