Some critiques on bitnation from an former member:
http://bitcoinmagazine.com/17285/why-we-wont-be-a-part-of-the-bitnation-crowdsale/
This "critique" seems like it was made in a state of fear. Irrational fear of the SEC cracking down on blockchain entites.
This fear makes logical sense because election season starts soon but if you actually look at the actual level of risk it's low. You'll get a slap on the wrist, you'll pay a fine, but that fine if based on Satoshi Dice is likely to be under $100,000 for an operation that made millions. The fine shouldn't be so scary that people are afraid to even attempt to innovate because that is bad for science.
I highly doubt anyone violating the SEC is going to be sent to prison. I mean you never know because they did crack down really hard on Aaron Swartz but it's very unlikely that people will be going to prison. If you really believe Bitshares X could be worth billions, or if you really believe BitNation could improve the functioning of governance, then fear of the government seems to be a really odd argument to make.
You won't improve governance because you fear the SEC? Okay then you can resign and let people less fearful do it instead. Why write an open letter to spread all kinds of FUD and fear about the legality of crowd sales when not a single crowd sale except for Satoshi Dice has actually been fined? And Satoshi Dice was only fined because they took it further than almost everyone and also were about gambling which never is politically popular.
BitNation might or might not be ideal for the Bitshares community but we do have more in common with them than we have with the SEC.