Your smart contract proposal doesn't contradict my concerns about immutability. What if the contract is improperly written or does the wrong thing? What would be done then? A smart contract isn't magic. So again I'm not really sure what your point is?

Is it that if everything goes perfectly with smart contracts being written perfectly with no bugs and all contingencies being taken into account and participants of the contract agree to the terms of said smart contracts in the event of fraud that's identified and confirmed it can be reversed? OK, point understood.