:lol: "You will be assimilated!"
Honestly, the KKW wouldn't have to charge fees that are higher than they are now, I don't think, unless you're saying that the higher fees would kind of naturally weed out people who are unqualified since it would be a higher investment than they would want to pay to get rank. This, I think, wouldn't be much of a deterent since I know some people who have paid some pretty high prices to get the rank they "deserved," even if they didn't know the system in which they were being ranked.
As for demoting people, that's problematic. I don't know if the KKW as any sort of guidelines about that (I know the ITF does in theory, though I only know of one person who has been demoted and that was some time ago). Even if they did the prevaling attitude in the west, at least in the U.S., is "who are [fill inthe blank] to tell me I'm not qualified to teach/be a 5th dan/whatever." In the ITF you cannot promote black belts unless you're a certified International Instructor. That is at least a medium level of quality control. It's my understanding that the KKW doesn't require any sort of credentialing apart from being a 4th dan for people to promote students (outside of Korea). There's no requirement to standardize your techniques with those of the organization so when you're promoting your students there's no motivation to have them conform to technical standards.
This seems most likely since, as an outsider, I see very little indication that the KKW is interested in shoring up standards. Not none, just very little. They could well be working on upping standards but just don't publisize that fact to the wider martial arts commuity.
Pax,
Chris