Shawnjefferson - what you have described is exactly how it is going to work

People worries about illegal actions are referring to "bystanders" - as you've called it - wanting to have a binding "say" (vote, or whatsnot) in matters decided by GA/Board. It is because some people would like to have Council equal in "power" to Board (nonsense) or at least having some power over it (not doable by law and hurtful, so still nonsense). All the concerns about responsibility-liability is about situations, where those unregistered/not liable people (Council) would decide on something, that liable people (Board) would have to execute.

As for the rest, you seem to have got it well, and it's refreshing to see, that someone have gone through this topic with understanding

/Estel