In all honesty I don't think either guild should have been deleted. The server wasn't in any shape to handle that kind of action, and it's never a good idea regardless. You can send as strong of a message without driving them off of the server. Ejecting a guild from a zone and forbidding them to attempt the encounter, killing everyone after continuing to act like retards after ample warnings, depopping the mob or letting the loot rot are all solutions that don't make people stop playing on an already near-death server.
Had I made the same decision that Rogean did, I can guarantee you that I would be getting browbeat from both Rogean and Nilbog about why it was such a bad idea, if not canned.
Aside from the negative impact the decision itself made, the most significant issue here is consistency. You generally don't want to be consistent in how you address a particular issue, because the instant you make a ruling players immediately begin plotting how to use future similar rulings to their advantage. But consistency in applying some equivalent punishment to all parties who violate rules is not optional.
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