OK, I'll name some problems for you :p.
a) People would complain about who to elect to this group. For example I would greatly protest again Machismo.
b) A lot of FOD's members aren't this sensible; the majority perhaps. Therefore the elected players are not representing the majority.
c) (A little harder to follow perhaps) If someone suggest an idea to one of the council members, they may not mention the idea in the council as it was meant by the player originally.
d) There may be stronger and weaker members in the council and therefore some may not get their say. This way some FOD members would not have their view expressed as loudly as others.
e) If a lot of people outside the council believed in something, but none of the council members believed in it, it may not get mentioned meaning again that the majority are not represented.
f) A lot of people's PCs cannot support large conversations on MSN.
I have thought of 6 valid points in however long I have been writing, about 10 minutes. There are more that I have been unable to put into words as yet. I am not saying it is not a good idea, but there are some significant problems that need to be overcome.
Nick