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Sir Venture-Captain.
Our group also became put in a position of deciding the fate of the Sages. We listened to both options presented by Amenopheus, and the Diamond Sage. We reasoned that both sides had benefits, but also downfalls, and that a middle ground would be needed.
There was a similar system I read about once in a book when I was a hatchling. In essence the group does require some form of leadership. A figurehead if nothing else, but must still be run as a group in order to ensure that no one sage can gain power over the others.
We proposed a moderator. A single person who functions as a advocate for all parties present in voting on matters, but is not actually a sage, nor has the ability to become one. This position comes with very little in terms of power: the Moderator may speak first, and may cast a deciding vote if the matter at hand becomes a tie.
Explaining this issue to my fellow pathfinders, as well as Amenopheus and the Diamond Sage, the solution seemed the best of both worlds, and we all agreed it for the best. I'm not sure how things may work out, but we felt this provided us with the best chance of success.