My only comment on the Reps part is the thought back to Imperial Germany after WWI. They were made to pay reparations that crippled them and laid the groundwork for WWII. pushing the Reps WILL result in another war as ANY vindictive or revanchist leader of either Alliance will use them as a bat to beat it into their respective Alliances heads they need to rebuild and roll VE for forcing it on them to begin with and forcing them from the top lists as what were once premier alliances of the game.
Now that said I understand that Guardian/SK aren't on the verge of collapse like Imperial Germany was, and the Reps aren't completely crippling and designed to be as such. They are more symbolic, however any concessions, whether they are warranted or not by the victors, which VE will be no matter what at this point, will be resisted by any side that honestly believes they have done no wrong and don't deserve them forced on them.
If Guardian is willing to acknowledge their own fault in this Alliance, why not meet them half way and lower the Reps as they have shown humility and acknowledgement that they did in fact do something wrong.