To continue the analysis of the proposal,...
"The body would be given essentially unlimited authority to set project policy, so long as it is in compliance with Wikimedia Foundation policies and resolutions, the relevant laws, and so forth."
To my mind this is essentially unrealistic, given the GFDL or whatever later licence we migrate to; though of course "and so forth." covers a lot of ground. In fact it covers enough ground to plausibly constitute an [[Overwhelming exception]]. "Essentially unlimited" but in practise in the real world limited in an endless variety of ways and manners.
For those who don't know what an overwhelming exception is, it is a logical fallacy of the type (swiping an example from the article I refer to above):
'"All right, but apart from the sanitation, the medicine, education, wine, public order, irrigation, roads, a fresh water system, and public health, what have the Romans ever done for us?" (The attempted implication (fallaciously false in this case) is that the Romans did nothing for us). This is a quotation from Monty Python's Life of Brian.'