I pondered about the Mod/Gm stuff too.
Mostly I am fairly in the "backoffice", if you will, so not that up front with the developments on RL and other stuff in the game community.
So it's hard to pick / maintain Mods and GMs that are actually well-liked or seen as natural choices.
As you might have seen, the GM stuff is something I try to give to the players, too.
Those who RP value it greatly, and only in public places I think it's OK to have a larger restriction.
So.... many of the mods in the game I know from ages ago, and deem them fit for the duty. =)
I have not had a lot of petitions (close to 0) about one being out of line.
Some mails I get, but in 100% of these cases I either talk to the GM/Mod or (if the case is pretty much clear) ask them to re-evaluate their actions in the least.
But, there are many (small + not so small) things that can be changed
(atm I am just hoping to get the timeout as large as possible without "freezing" the server for an hour)