All this "we have 1 council with 2 rule sets and 3 jobs" has made it even more clear to me that I strongly favor a solution that keeps the eV lean regarding the entites within it.

The eV is indeed not 'the enemy'.

IMHO, the council (as a legal entity) should be (legally, of course...) removed from the eV. The board should of course delegate daily business of running servers, moderation, etc. to working groups within the community, JUST AS IT IS NOW. The board doesn't have to do all the jobs by itself. There could, of course, be a 'steering group' that makes sure all the jobs are adequately staffed, etc. Whether that group is called 'Council' or 'The Community Guys' or whatever...