Baloo,
this will happen, it hasnt so far as no one appealed for a punishment for the VO before.
they have previously issued PR with much less softer requirements but with the same legislation and laws in effect, they are arbitrarily imposing harassing rules and rejecting people. This cant be accepted.
The problem is that VO's all have discretionary license, it is clear that most follow the rules and those that don't can attribute what they do to interpretation (which is clearly part of their job).
I would be more inclined to report everyone who was cheating or defrauding the system (in any way), those people are causing more problems for immigrants than all of the VO's put together.
You only have to look at public opinion in Canada to see the damage being caused.
How much is required to file an appeal?
It depends, see...
http://cas-ncr-nter03.cas-satj.gc.ca/portal/page/portal/fc_cf_en/Court_costs