Maybe we should just use AUTH on group relays to create exclusivity, remove broadcasting, and abandon the privacy promise of encryption?

Someone malicious could just screen-shot stuff or copy-paste the raw json, anyhow.

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A private relay would be required here to properly enable AUTH and trust that the relay is authing against a configured ACL for your group. In that case yeah don't see the reason for encryption since TLS between client/relay and group messages are private to that relay behind auth.

And then you can add/remove people at relay-level, which works quickly and smoothly, and doesn't require a fake-admin-npub as a crutch.

We just need relay admin UIs??

We already have a good one, that is OS.

https://github.com/orgs/relaytools/repositories

That's what he's running here: https://relay.tools/