The problems we see are a result of a couple of decisions we made a long time ago, not understanding their longterm consequences: simplistic moderator hierarchy and valuable real-estate in r/ urls.

It's kind of foolish to suggest that you didn't "understand" or think about longterm consequences. Forum moderation wasn't a new concept when you started reddit and you made specific decisions with specific expectations. Many large forums existed whose moderator staff was handpicked by site owners.

There's a few obvious "conceptual maps" to what went on with reddit from early days. One is the early internet domain system, and another is Wikipedia. The early domain system offered cheap domain names to the first 'comer', which lead to a high demand for common terms, trademarks, and other simple URLs. (www.pets.com, etc.) The result was that these were rapidly acquired or sold to those who had the greatest interest in controlling them.

Obviously, decisions made by reddit Admins caused certain key subreddit terms (news, worldnews, politics) to become highly valued. That's nothing new and has been around since AOL keywords. This also meant that the subreddit moderator leadership mattered more, while at the same time reddit admins maintained the same imperial 'disinterest' in intervening, while nevertheless influencing (behind scenes, in private emails or IRC channels, or through outright policy decisions blamed upon "investors").

In the case of Wikipedia, wikipedia purported to be a benign anarchy, without centralized control or moderation except where absolutely needed. Various processes and controls were eventually established by interested parties, yet for all intents and purposes it remained under control of Jimbo Wales and the Wikipedia Foundation which could effectively 'turn out the lights' if they desired.

Like Wikipedia editors, the crop of moderators are 'accepted' by the site owners, yet are made to do the grunt work needed to make reddit successful without anything (presumptively) other than ego remuneration.

Finally, the other important conceptual map would be to the Northwest Ordinance of the early United States. As one of the earliest acts of the States United post-revolution, it established land patents to be given to whoever would explore the newly acquired territories, provided that they A. survey the land (thus making it navigable and hospitible to others), and B. establish systems of rudimentary territorial government.

This is really what you did in the past 8 years on reddit. You let the subreddit pioneers create subreddits, and then the people populated them. The moderators in place created rules, and there was a rough concept of continuity of government, although some intervention was needed.

The next step is obvious: either recognize popular sovereignty in subreddits and establish a means for election/de-election of moderators, or give up the illusion of sovereignty altogether.

Every time people say "we did it reddit!" they believe that there is in fact an empowered "we" - when in fact the only power comes from code and 'the light switch' (ala Mao - barrel of a gun)

Right now you're dodging all responsibility for bad moderation even though it is permitted de facto by site admins, and taking all credit for good moderation. As far as I know, you have no obligation to allow moderators to continue per TOS or AUP - unless you have secret contracts or agreements (paid for?) giving them the job.

So what's the real deal Steve? You can't fool all the people all of the time.