Yeah, I realise the Nobel prizes cannot be revoked. It was sarcasm.
But let's hear it from the horse's mouth..
The secretary of the Norwegian Nobel Committee, Geir Lundestad, wrote in his memoir that the decision “did not achieve what the committee had hoped for”, and that “in hindsight the argument … was only partially correct.”
However, you are incorrect on your first point.
Nobel Peace Prize is decided by the Norwegian Nobel Committee, a group of five members appointed by the Norwegian Parliament (Storting).
This is different from the other Nobel Prizes, which are decided by Swedish institutions and awarded in Stockholm.