Ron,
Thanks for the note. You raise some good points, but I think your premise is off. It's not Central Banks vs. the markets, rather the Central Banks ARE the markets (Japan CB buying essentially every new government bond issue being the most obvious example).
As you point out, the Swiss CB had the option of continuing to print francs to intervene to buy Euros and choose not to. But choice is the key word there. They were not forced to. The economic consequences of selling so many Francs to buy Euros is potentially more inflation which, at the moment anyway, is nowhere in sight. So the Swiss CBs decision was political not economical. I'm not saying it was a bad decision (putting the cap on in the first place was the bad decision), but I am saying the markets didn't force the Swiss CB into it.