Alright, so, after reading over everything, and thinking about how I feel, and hopefully as a neutral party, here is my two cents.
Wilson stays, but only as the Valkians. The Draconians will be ret-conned/decide to leave and never come back. Keyguy stays as GM, I think you are doing great, and I love the universe you've created for us. It, in my eyes, needs you to remain at the helm to drive this crazy ship through the storm we are in to calmer waters.
We take a break, all of us, from IC posting, and together, draft up a revised set of rules. It doesn't need to be perfect, nor super in depth, but enough for us to not only live by, but also play by. It will ensure that we can keep IC IC, and OOC OOC. We can figure out everything if we work together.
Duck, you are not doing bad stuff, nor are you being a complete dick. No one is here. Not Wilson, Cale, Key, anyone. We have gotten heated, so lets cool off, take a deep breath, and push forward.
Lets all start playing fair. We can win, and we can lose. We can suffer massive defeats, and glorious victories. So, hands in comrades. Let us rally up, work together, becoming a coalition for the standard of Nation Roleplay. And Cale, I want you back. Please, rejoin, you are from what I read, a skilled roleplayer. Rather than let the teething problems that any new concept faces, the problems that have started, let all of us, put them behind us, and start new, a fresh page, and work with what we got.
I may have more to say, but, I feel this is sufficient for now.