Yes, I understand that is probably the most likely scenario.

I imagine it would go down like this:

Council says, "no we cannot do that, since it's illegal and it puts the MCev in jeopardy", assuming that the Council have the common sense to know this. If they don't, they can't FORCE the MCev to do anything illegal, how could they?

So let's say that these files end up somewhere on maemo.org system by the unsanctioned action of one or more individuals:

If the Board, acting on behalf of the GA to protect the MCev, learn of illegal activity like hosting files, they can immediately ask them to be removed. The Board can enforce this, since they (when I say they, I mean GA/Board) "own" those assets. They can "fire" any tech support that is doing anything illegal. Take their access away and show them the door.

I have much more faith in the people that will be running MCev (the 100 or so people that are active members who will probably join MCev) that they will never want to jeopardize maemo.org in any way by doing anything illegal. Even if one bad apple does feel that way, that's what the GA vote is for. It's obvious that the Council cannot have power to force anything on the GA, that will never work. The Council can (and does) have a place in the new MCev structure though, I believe.

Why doesn't your local golf club use it's treasury to buy drugs and start selling them? Is the club membership going to support that action in any way?

That's my view, opinion and understanding of things anyway.