This is a decent example of why people increasingly don't much care about guilds. Just about everyone who reads this thread that is already inclined that way nods and is a little more that way. BS like this isn't helping revive a damaged guild and raiding scene. I suppose I understand why some guilds believe they need to do this but in the end it's petty and not a little bit stupid.
Guilds having problems recruiting for raid teams that do this get what they deserve.