Just my two cents, but as Shadow said it is wrong to eliminate the communities voice on the matter, but on the same hand the final decision still comes down to the Council because that's why it exists. IMO, this topic -- since it's already two pages in -- should be for public use and discussion for Shadow and other non-Council members to voice their opinions. A second topic should be created for the Council members to go over the communities opinions as well as their own and come to a decision. The latter topic would, obviously, only be for Council Members to post in.
As for the Grace Period, you just said it yourself, Shadow: "The reason for giving hosts a two week period is so they can
situate themselves with the beast and not get challenged for it right after they get it."
The Council was just handed all the Tailed Beast on SL and, before they can even discuss it, people are challenging them for them. Just like any player, they should be able to 'situate' themselves and decide how they're going to go about doing things before a bunch of people challenge them for the beasts.
Edit: Apparently, that other thread has already been made:
http://forum.shinobilegends.com/index.php/topic,9041.0.html