Molly
You can't account for the emotional and psychological state of others. I occasionally get threatened with legal action (as a journalist and writer) and my response is invariably “bring it on”. They never do (touch wood). Having recently published a true crime book, trust me, it's the ones who don't threaten to sue that I'm worried about.
It's a shame that you've been driven to exclude yourself from the EC but not all strata owners are bad, just as there are many lawyers who are thoroughly decent people.
Strata disputes do get personal and nasty and it's usually the people who do nothing to help who are the first to complain when things go wrong. Strata law is a minefield but the owners who rant and rave the most are often those who either haven't even read the by-laws at all or who sit up all night reading and re-interpreting the Act, bending out of shape to fit their arguments, like fundamentalists in any religion.
However, if an owner is persitently threatening and abusive, there are remedies under civil law – like AVOs – although these days I would always recommend first seeking a mediation (provided free through Community Justice Centres) so that the aggrieved owner gets a chance to vent their frustration and the subject of their abuse can put their case AND explain how badly these attacks are affecting them.
By the way, if the CTTT fulfilled its charter properly, vexatious and frivilous complaints would have costs awarded against them,as the Act allows. Don't hold your breath waiting for that day to dawn.