These associations are un-american and it's alarming to see such entities gaining power over private property that previously only the government possessed. They're a plague that needs to be stamped out, the sooner the better.
The residents SHOULD complain, even if they made the mistake of buying into it. Wrong is still Wrong, even if (or perhaps, especially if) it only takes advantage of the foolish or unsuspecting. It traditionally has been--and always should be--up to the local government to enforce community standards, not some group of citizens which amounts to little better than a modern-day posse.
As for me? They'll pry my pink flamingos out of my cold, dead hands.
J_A_B