SL Republic? Unions in SL???

What is going on here???

There is a community in SL based on the proposal that SL needs a 'republic':

"The Metaverse Republic, currently work in progress, will be a legal system for Second Life, with real powers of enforcement originating in user-created tools, and a democratic parliament.

There are many disputes and potential disputes in SecondLife that could benefit from formal resolution: disputes about broken agreements, land use, alleged griefing, extortion, etc. The Metaverse Republic aims to provide an effective and fair system for resolving such disputes."

An now unions are organising in SL!!!

"A number of trade union organisations from around the world are coming together to set up a home for unionists and union issues in the virtual world Second Life.

We’re planning to launch it later in 2008, but in the meantime want to hear from anyone with an interest in unions and virtual worlds."

Q1. Are these developments appropriate for virtual worlds?
Q2. What are the economic and legal issues?
Q3. What impact could these developments have on marketing in SL?