Well said Bartley.
I cannot and do not agree at all with what the NPO has done, but I can also say with certainty that I don't like what I've heard being proposed. Karma should be trying to set an example, not be NPO version 2.
No amount of reparations will ever reform the communities that NPO destroyed, nor will it prevent such communities from being rebroken in future. Only a good example set by Karma will be able to prevent this from happening again.
What such reparations will do, however, is show Planet Bob in general that: provided you are the either strongest alliance in the game, or that you have the support of most prominent alliances in the game, you will always be able to ask for almost unpayable amounts of reparations, with very little outcry.