Take a look at the subtext (Caution: Spoiler)

Rating: Null/10 (2 August 2004)

Council= U.S. Government
Villagers= unsuspecting American public
Village= idealized version of good IL' U.S. of A (freedom, hope. ..)
"Those that Must Not be Named"= instrument of manipulation i.e. terrorists, weapons of mass destruction, you fill in the blank. . .
Isolation from rest of world= lack of mainstream media coverage of world events
Hmm. A council governing its people by making use of their paranoia. Sounds awfully familiar. Funny how whenever someone got close to the the truth, they raised the terror level a bit (some red slashes on the door---isn't red the highest national terror alert level?).
Of course, I could be wrong.