Holy shyt, are you frickin' serious? Buying a church just to spite people who probably don't deserve it anyway?
I mean, I usually don't deign to personal instults as a rule, but what is is wrong with this fruknut? Good DM or no, he sounds like a pretty bad *person*.
That out of the way, there may be ways to solve this...use it to mess with his plot. Move away, ignore the plot he has set up to save your lives, choose an outrageous ECL race when this guy dies (which he probably will), arrange for the family to try to kill off some figures that have been instrumental in the system, try to team up with a good person, organization, or dragon in a foriegn land...
Take the riegns away from him. You play your characters, you have motivations, you go do what your character would do.
Maybe if he realizes it's stemming from his own dickheadedness, he won't be so so inclined to do it again, realizing it only ends up getting people mad and destroying his story.
Then, try to get someone else to DM for a while, and tell him that your histories are working to your disadvantage (maybe during the table, or during character creation). Heck, have a trusted party member kill you, take your head for the bounty, keep your body and move to a new land, and then revive you there with the bounty you collected, and a bit left over. Grow a beard and carry around an axe. Get a hat of disguise. If all else fails, act wounded and ineffectual and "fall on your dagger." When he tells you to do a new character, whip out the same character sheet. Repeat ad nauseum.
Those are probably some bad ideas at the end, but still...
Yeesh, I have a hard time taking this guy with any seriousness after these plans have been revealed. Send him to get help. Wow.