I'm putting this in as a comment because I don't want to change my article after people have already read it.

There's a fourth problem and I don't know how to handle this one, either.

So let's say we have a witness who has been nothing but stellar and perfect reputation. Either the witness becomes a bad person, was already a bad person - or maybe just got hacked. Suddenly, a bad transaction is introduced. A huuuuge bad transaction, like, a million dollars worth.

How is that ever reversed? I mean, fair enough, we can now 'vote the jerk out' - but that million dollar transaction is part of the blockchain now (or a million-dollar transaction has been censored out). Somebody may have just gotten shafted pretty hard, there. What happens next?