Sounds to me like Vellos' "demands" are "we would like consistency between everything the game has enabled us to do up to this point and what the game is now telling us."
It isn't accurate to dismiss this kind of thing as 'some RPed event should trump game mechanics.' Most of the "RPed events" here, just like Saffalore's formation, were done via game mechanics. If this were a bunch of pithy RPers posting pages and pages about their little BM world that nobody else understood that would be different. This is Vellos. He ain't like that. If he got here, it's because BM let him get here.
Obviously this happens from time to time and plenty of people get by without being upset, but ask yourself why people would care about this sort of thing in the first place.
The best thing about a game like BM is the intangible atmosphere of the story or the narrative. It isn't that the "game board" is the most awesome thing ever, or that the political hierarchy by itself is the most awesome thing ever; it's more than the sum of the parts. That's the very reason why people are usually happy to put up with broken individual systems - there are enough other things that work that the game can overcome some temporary inconveniences. It's like a broken set piece in a play. It detracts but it doesn't ruin the show.
Cases like this, though, are like leaving Faust at intermission and coming back to see the second act of King Lear. What you've seen up until now does not connect correctly with what you're seeing today. The resistance to doing anything about it seems to be rooted in "well, the game mechanics say this and the game mechanics are there for a reason, so QED." There are a lot of game mechanics in place to prevent characters from making significant changes in realms, but by now it has been shown repeatedly that there are a lot of use cases where small groups or even individual characters ought to be able to make precisely those changes. The discussion of whether a manual intervention is warranted is a red herring: I didn't ask for one with the Saffalore/Terran Chateau problem because that's just a band-aid when you need systemic repair.
The take-away here is that there are cases where small groups of characters ought to be able to do things to their very small realm, and the argument that "all of the government bureaucrats think otherwise" is very weak. There were not a lot of what wew would think of as government bureaucrats in Medieval Western Europe (compared to Rome or Byzantium) and even if there had been, a monarch or even a Duke with total political or military control would roll over them without batting an eyelash. Most of the "bureaucrats" would be minor nobility and minor nobility did not dictate what happened. So if you don't want to consider code changes, that's fine, it's certainly your prerogative - but don't pretend that this kind of thing "makes sense" because some bean-counters say it does.
