I don't know. It's not an easy question, but it's clearly one that needs to be answered, hence the suggestion of getting a view from the Community Council.

That's a possibility. The arguments for that seem fairly straightforward:
- He can't be trusted, and untrustworthy software should be kept out of the maemo.org repositories for the good on maemo.org
- There needs to be a clear penalty otherwise we're just inviting similar abuses in future.

I think it probably would be better all round if we could find a way back from this, but it's hard to see how that can happen until or unless SIO2 appears to recognise the wrongness of their actions, and I don't think they really do. I don't think it would be a good idea to let it slide with no action at all though - the maemo.org project and repositories have a (deserved) reputation for shipping good quality, properly QA-ed packages, and that will go away if maemo.org is seen to condone packagers circumventing the mechanisms that are set up to achieve that.