If you know a decent amount about the IBJJF, chances are you probably already know most if not all of this stuff. In fact Eddie has posted on the 10th Planet forum a number of times mentioning how Master Carlos Gracie Jr basically runs IBJJF but it is essentially run by GB. It is definitely an imperfect system with a bunch of ridiculous stuff go on (ie. did anyone ever see the notice they sent to a competitor regarding bringing water matside prior to his fight? or that rubbish about how koral purple belts were banned because they looked 'too lilac'?), but at the end of the day, they have developed into the biggest and most prestigious organization for BJJ in the world.
You don't see Gracie Barra winning the team title every year just because of their direct connection to the organization, in fact Alliance has won the last 5 world team titles. I read an article some time back about how the IBJJF is hindering BJJs chances of getting into the Olympics and its completely true. FILA would have been the only way it would've gotten in but even they have dropped submission grappling I believe so BJJ in the Olympics is all but impossible in the near future.
There are plenty of other options for people who don't like the IBJJF and they survive and thrive because the odd actions and conduct of the IBJJF is well known. There is definitely a money making racket behind the whole operation and that's why the worlds were permanently moved to the Pyramid Cali a few years ago from the legendary Tijuca Tennis Club. Also the whole certifying belts process is tedious, unprofessionally run, and costly with little of any of these profits seemingly plugged back into the sport for the athletes or future growth of BJJ. The worlds would be the true worlds if they had a qualifying process but it is a major cash grab instead. With all this said, lets not be naive. This is how it has been for quite some time and its not like there isn't corruption elsewhere. I've heard of ridiculous corruption in the Abu Dhabi Pro as well (Not ADCC, a different Sheik runs this one), and other organizations have their own issues.
I think alot of you bring up some excellent points. Personally, if you're so against it, don't compete and don't worry about it. You can be a good grappler who is recognized by others as long as you have a decent legit lineage and you don't need the IBJJF for that. The IBJJF doesn't always do things in the way most generally perceived as 'right' or 'correct' but they are the most recognized sanctioning body for bjj in the world (official or unofficial). Finally, don't believe everything you read either. I'm not Scoop McGuillicutty or anything, but their are errors in the report about the Sam Osman situation and other things as well as far as I know. When it comes to the IBJJF consumer beware, but know what you are getting into