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The nude statue story reminds me of one of the first strata yarns I ever heard (more than 10 years ago when I first started writing about this stuff) and it came from the records of Fair Trading itself.
Someone had complained that their neighbour, with whom they were constantly in some sort of strife, had placed an “evil” tribal statue in their window, so that it looked on to the the other person’s garden. They were, they said, afraid to go out into their own garden as they believed they were being cursed.
Needless to says, there is nothing in strata law to specfically cover curses or statues although there are restrictions on doing anything that might disturb the “peaceful enjoyment” of another lot. To add fuel to the fire, the neighbour concerned said the plaintiff shouldn’t have been looking in their window.
If I recall, the mediator basically told both parties it was time to grow up and settle their differences before this stuff got out of hand.
And both these stories are good examples of conflicts where the desire to do what’s right quickly degenerates into a need to WIN. And as soon as you and your neighbours get to that point, all logic and common sense evaporates.