Merit sales, transfers to aliases, back-and-forth trading, etc. are not much of an issue. All illegitimate merit will decay, and will account for a tiny and very expensive fraction of the total merit economy. It's basically a rounding error; fight it where convenient, but waste no sleep over it.
I think that actmyname has been too hasty with some of his negatives, but I haven't had time to look carefully enough into it to justify making forceful changes. I did exclude actmyname from my trust list, so another DT1 could remove him from the default trust network by doing the same.
So what are you proposing that be done against shady behavior regarding the merit system? Nothing? Or are you simply saying that *we could/should* tag them, but that some of the tag's by actmyname were unwarranted?