Isn't the DAO on a different setup than ETH? Nobody mines DAO so how exactly can there be a consensus?
Yes, but it runs on ETH's blockchain and on ETH's protocol. So if the miners agree, code can be implemented (on the Ethereum network) that says "this Ethereum contract can't ever spend money" and likewise, code could be implemented (on the Ethereum network) that says "this one transaction never happened"."