While the Mods have the right to make this choice, I consider something so far reaching and broad, that effectively bans any sort of game that involved the real world in any scale over that of a small town as written, to be a mistake. While I agree that politically based flame wars should be stomped on, I do not think that game ideas such as 'You are all wizard lords of a wizard academy, have fun abusing your power while still carrying out your responsibilities enough you don't get fired', which is a game that I have actually considered running, to be banned. Because that would involve both facility politics and inter-fantasy nation politics, as rule as written both of those are banned, and while people can say 'oh the mods will not be mean about such things' depending on that while directly ignoring the rule as written does not seem like a good idea.
Or any of the 'Council of National Leader' games we have seen happen in the past, which are also banned by the rule as it is written. Hell, looking at my quests, I get deeply worried about the fantasy nation politics that I had planned to show up once players finally made it to the fantasy setting in MC Dynasty and raised a wizard's tower and basically became a power player locally, because rules as written I'm pretty sure making a peace treaty 'on screen' is against the rules, and that sort of thing shouldn't be. Or dealing with the multiple space nations in my space pirate quest... or, hell, as written, I'm pretty sure it makes it against the rules for Minster Fudge to show up in the Tri-Master Quest at all. Or basically anything else to do with the later half of Harry Potter because the political corruption of the Ministry is a more then minor thing in that half the series.
Look, I'm not saying that the idea behind this new rule is a bad one, but could we at least have a form of said rule that doesn't blanket ban depicting any large scale form of human interaction as per a direct reading of the text before any sort of 'common sense' interception?
Beyond that, the 'Common Sense' behind rule interception is a thing that changes over the years, not something that remains static. Even if, right now, or for the next year, there isn't a single person who would view a rousing game of "You are a magical hypnotist spy sent to go spy on an enemy nation and 'turn' any of its assets that you can" as against the rules, will that still be true one year and one month into the future, when some new mod is having a really bad day and no sense of humor? Even if that is something that we can appeal, it isn't something that we should ever have to appeal in the first place. And as written, it is something that we would have to end up appealing.
If the issue is people throwing political poo at each other, why not simply announce that Rule 1, the 'Be Polite To Each Other Or Else' Rule, and Rule 5, the 'Keep On Topic' rule are going to be enforced with a Rod of Iron on anything to do with modern politics? Anyone throwing political poo at each other and refusing to stop could still be banned under those rules as is.