Very lord of the flies, it is. And when you unplug one machine, the whole network goes down (and a rotting pig head falls out of the end of the wire).
Ehr, no. There is normally one "Active monitor" who is responsible of checking that no evildoer starts creating tokens or drops one. If that monitor goes down, a standby monitor will take over that role, etc.
Also, Token ring had something alike to "hubs" (IBM called it a Media Access Unit) which were actually switchboxes with relays in them - cutting a wire would drop power in the relay and close the loop again.
If you didn't use one of those MAUs to keep a continuous ring structure, then obviously you are on your own for managing the loop and disconnecting a station would indeed bring down the network.
On a final note, classic token ring used a "hermaphroditic connector" and not one of those BNCs. Unless such a connector broke, you couldn't mess with it. Only Ethernet over coax needed a terminator.
This would be true in scenarios where it was a physical ring topology where each node connected to its neighboring node, making a physical ring. However like I said that method has been pretty much been thrown out, as there are devices (for the life of me I can't recall the name) that each node can plug into like a switch that controls the flow of the token ring(s). I assume where you were had.
Heh. You were just talking about the Media Access Unit I mentioned above (I cheated by peeking at Wikipedia).