"Interesting note about seizing her license... You're right about it being pointless, but it's also illegal."
I see nothing illegal about seizing a piece of paper, it's only the certificate of license and not the license itself. Hey, I'll bet she still has the wallet size certificate... HA HA!
"They just set themselves up to get beat up by the FCC, since they're the only ones who can legally do so."
Not so, see above. As an aside in a similar situation, some years ago the city of Elizabeth NJ sought to shut down a rowdy bar without success until the police got tough, REAL tough. They repeatedly raided the joint Untouchables style arresting many on charges ranging from drunk and disorderly conduct to lewd and lascivious behavior (gays were not protected back then) which discouraged most patrons but a hard core few remained. Finally the Chief himself confiscated the state liquor license certificate, I don't know if the state ever got involved or not, maybe he just put one over on the owner but in any case the next day the doors were sealed (not just locked) and that was the end of it. Today a parking garage occupies the site, all's well that ends well.