Basically, what she means is, that CAP should allow certain people to have sigs and some not to. Which I think is a pretty bad idea, as different people have different idea of a “good website”.
As to you saying that you went from 250 referers to 25 – this is not a ban, often, there are new websites which are “better” than yours, and Google will place them above your page :p
If your website completely disappeared – I would wait for a while before touching anything, sometimes sites just come back.