It's history now, but referring such a contentious issue back to a volunteer Awards Committee would hardly have been fair on them, and they might reasonably have refused. It would have put them in an impossible position, and (hindsight again) probably damaged the LAA then as much as this reincarnation has done now. Anyway, it would not have addressed the high feelings amongst a significant proportion of the membership.
Forget the minutiae of process and procedure. The LAA Board did absolutely the correct thing in 2016 and referred the issue back to the members. Since it was the members who voted on the issue then, it can only be the members who vote on essentially the same thing this time.
I certainly agree wholeheartedly with your first paragraph CGB and especially your last sentence. I'd add "on both sides". If only the case had been made by addressing the specifics of the complaints in a reasoned and sensible manner, rather than via lawyers, forums and the media.
Whatever happens tomorrow, let that be an end to it for the LAA.