My proposal is to reverse the effects of the recalc on all actions that have occurred before the recalc. My argument for this: Just because something is free doesn't mean that there isn't a contract of sorts in play (not legally binding of course, but still important). If a user does things according to the FAQ and guidelines, they should reap the benefits that come with these actions, such as No
no-follow in their link, and all other points-required features of the site. To take these all away (or even some of them) from people who have already earned them isn't fair.
To sum it up in 2 words: Grandfather Rights
For those who haven't noticed yet, The global reputation recalc of March 2010