This is a relief. RG certainly gives the best search results for a lot of queries. This whole story made me fear that Google was choosing power over user experience. And that should never be the case, no matter how offending the founders of RG might appear sometimes. Don't be evil!
Is there a smell of corruption? Because it is in favor of power, connections instead of user voting, just like in favor of dictation over democracy. Isn't it?
Bought voters = manipulated SEO spam blog posts
Fair voters >> bought voters
Not reacting to the SEO manipulation would have meant accepting a fraction of bought voters.
Banning RG completely would have meant to ignore the even bigger fraction of valid voters.
Google's actual decision seems to be the most democratic: Forcing RG to decrease the number of bought voters while not dictating over the voice of the valid voters.