Consider this: If instead of hard forking, the same folks get together and create a new coin called Paycoin Redux (PAX). They do an ICO in which any holder of XPY can obtain equivalent value pro rata percentage of PAX coin by exhanging their XPY for PAX; except Josh and any person or entity that can be identified with Josh as an affiliate or family member is banned from ICO participation. The XPY exchanged is destroyed. The result of this would be exactly the same as a hard fork, but you cannot possibly claim anything morally, ethically or legally wrong with that.
Oh Em Effing Gee! Do not go making statements you are clearly unqualified to make.
The establishment of a group responsible for determining the legitimacy, or otherwise, of those seeking to trade one coin for another confers the notion of authority and, as such, ownership of the project. If there is anything that the owners of a cryptocurrency project can be charged with, in terms of breaching various national or international laws, the governing body of the project would be held accountable.
I don't think I'd sleep particularly well at night putting my nuts on the line to try and keep this monstrosity alive for 'the sake of the community'.
If it isn't 'open to all' then the governing body is taking responsibility for vetting those who it is open to.
One word: Minefield.