A contract that is solely on based "trust" is worthless. People are unpredictable and can change without giving an indicator.
I think the notion of machines doesn't play a role here because the code executes a set of rules written by a human after reaching a certain level of consensus.
Ned did many things wrong and witnesses too. But I can't understand the difference between:
Ned selling steem to one person.
Or that one person buying the same amount of steem from the market.
Or Ned selling Steem on the market then that person buys that steem from the market.
Or Ned selling that same amount to different people in the market.
(Witnesse did nothing when STINC was actually heavily selling STEEM)
Freezing those accounts is a political decision that hides a much worse and deeper history of incompetence, greed, lack of professionalism and accountability. Everyone is to blame here.