For pardoning,
Just made a long post about this and it got deleted so I'll just summarize. That is a tricky spot to be in. I could compare this situation to a country. If the government doesn't function right, it will start to fall apart and be destroyed and fill with crime and corruption. Other things can contribute like lack of resources and location. All of these things cause a lot of problems. It eliminates people's ability to prosper. Successful countries may lack in some places, but they have most things going right for them. So I don't think it's just one thing, but a lot of bad things put together. This isn't a country and it's a forum so all of this could easily be changed with time and the right decisions, but it has to be done before we get to the point of no return.
That's a good idea to make new users aware of the potential scams so they can stay away from them. I think the average scam is pretty low in amount, but it could definitely contribute to decrease of activity because it would put people off from the site before they got a chance to explore. I agree that a new user or someone that's disliked often get's bullied and harassed, with the harsh criticism and posts made around the forum it doesn't make it very welcoming. It doesn't help that staff either partake in it or ignore it (Ex.
http://www.sythe.org/14156422-post11.html / Why I think this is unnecessary
http://www.sythe.org/individual-staff-feedback/1527409-feedback-sythe-2.html), because they definitely set a tone in some way for what's acceptable and what's not. The quality of content isn't very good, and there's not very many interesting places to post at least for me. This could be a reason why so many people go to the spam forum, because people's interests are diluted by the barely active sub forums around. The forum structure could have a lot to do with the decrease in activity because it seems so repetitive (Ex. Other MMO's/Other Games - Off Topic/Something For All [Critical Discussion/Sharing Thoughts should be common sense for a serious thread]). I don't think the issues that are contributing to the decreased activity are really being addressed, and if they are it's not being thought about fully). Roary made a good thread, but I've seen threads like that over and over and nothing really worked. Getting a lot of opinions and discussion on the problems is great but if bad suggestions are being applied with good suggestions it won't really help much. Increasing a forums activity is indeed a tricky situation, it takes a lot of time and thinking to work.
For pardoning, it seems stupid to me for extensively punishing people more for coming forward and taking responsibility for their actions unless there's good reason to. Definitely not having to wait another half a year without knowing if you'll be accepted or denied again. Only to have someone smugly deny your request, or post one or two words. I feel explanations should be encouraged when replying to pardons, not the other way around. For the majority of the age group on this site, it's like a presentation that's going to judged by a panel of people, except it's mostly personal. I don't think a lot of the responses are appropriate for the age group. Either way it's a hard decision deciding what to do when a victim can't be repaid. There's always the option of making people pay twice. Once at the start (Where it would go to would have to be heavily discussed), and then again if the user ever came back. This could put people off from pardoning though and is contrary to some of the things I just said. However, it is part of taking responsibility, coming forward and dealing with the outcome. I think waiting 1-2 weeks is the best idea so far though, and then repaying the victim(s) if they ever come back.
By the way, why is there only a week for a pardon to be accepted or denied? I see pardons constantly not getting enough posts and being denied, or minimum time put into posts to get it out of the way . If you're only required (by rule) to not post an explanation, the least you could do is post one or two words, literally. They're going to have to wait half a year to pardon again, at least show some sort of respect for them coming forward and trying to take responsibility.