Draggon, respectfully,
every reason you stated NULO won't work, is exactly the reason LU is in chaos right now. While there is room for adjustment of some of the implementations of this hypothetical govt, the brand of SC currently ruling is stuck in its ways, discouraging new aspiring players and drabbing down the community with "more of the same", staged wars, n00b baiting and the list goes on. People who are interested in evolving the game to include new players and a larger base of such new players, should take a more open approach when considering this "IDEA" and even help shape the way its policies may or may not be formed and/or executed.
Justa thought,
Wendy