This is amazing! I feel bad that its happening but I really hope this is the first of many acts of CCP actually having DED flex their muscles.
Its been so disheartening seeing such little done by the supposed "Overwatch" of all of New Eden so much so that they've often used as humorous anecdotes on impotency.
As for railroading, I'm kinda sitting on a Yes and No. To me railroading has always been an act that steps well into the OOC realm. I.e. Like the example of Urban Dictionary, the GM will not continue the adventure until "Go to Tavern A" is completed. CCP's approach here is a bit more nuanced. That is to say they are keeping the consequences of refusal entirely IC. Meaning failure to turn over the body will result in Outlaw status. This to me is very different from the kind of railroading a GM could do in DnD. I.E. Crossing his arms and basically freezing the game world untill "Tavern A" is reached.
To me this is a very cause/effect, choice/consequence move by CCP. The story continues regardless of which choice is made. It just may not continue the way you like it.
I personally think this is awesome. I'd much rather have more of this than less even if sometimes it steps on toes. Again, I do feel bad that a heavy price is being laid out for failure to comply. But coming from a political background, this is exactly what I like to see when when cooperation with larger entities is rebuffed. It's draconic don't get me wrong, but in many ways it's a RealPolitik move and a cool one at that.
Honestly I'm more interested to see what happens next, and what ever does you can be sure a few players have made a legacy here with this.