The Council of Crafters are the ruling council of the Villagers, made completely out of Crafters.
The Council decided that Gameknight999 was the reason that the monsters attacked. Therefore, they ruled that no NPC could be seen talking, using their hands, or showing any sort of intelligence beyond what they should be showing in front of users, or they would become Lost (Meaning). This ruling held from this boom in, so for Gameknight to communicate with the villagers, he had to see them in private or go into Minecraft.
The villagers, unable to fight because of the users present at the last battle, we're completely defenseless and at Herobrine's mercy. However, Topper and Filler declared that they didn't care what happened to them, that they would fight, and the other villagers followed, resulting in Herobrine's defeat.
Crafter spoke to the Council with Gameknight999 and Monkeypants271. He told them that, in the case that Herobrine couldn't be stopped, that they had permission to disconnect his server from The Source and end all lives on the server. However, this wasn't necessary.