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My tuppence worth.
I’d try to take as much subjectivity out of it as possible. If the season and FPL is voided, refund stakes. If the season finishes as is and is deemed complete by FPL then payout on current positions.
Appreciate there’s no perfect answer though and will be happy to go with whatever you decide. As you say, you’re not going to be able to please everyone!
full disclosure: i played for a very small amount so it's a non issue but would benefit from refund given my team sucks and already out of the lms
however, i tend to agree with this line of thought, while it would be fairer to treat it as if the season ended today if they don't resume play, you're opening up pandora's box with that and will then need to start implementing handicaps - ie what about the teams that haven't yet used certain chips vs those who have? what about the teams who played with a longer view vs those that didn't etc etc
from an administrative point of view, your best headache free solution is a binary play it out or cancel imo, once you deviate from either path it becomes a nightmare because whatever decision you make there will be people who feel they got screwed
perhaps in the lms just refund the teams remaining ie if there were 100 originally and 30 left those 30 split the pot? that seems reasonable to me because those who got eliminated were already out anyway