A website-as-MMO. Saints preserve us!
I'm very curious about the limits of this kind of voting determing the content, permissions and abilities of users to a web site, and the point where gamability becomes a fatal problem.
You could take it stupidly far, and have the highest karma users be able to alter the source code of the site or make similar deep structural changes. If I had the time to learn Arc it'd be great fun to hack the HN source to support this kind of tomfoolery.
I recommend pure Nomic as a geek drinking game.
So while I'm stubborn enough to maintain that, of course, theoretically you are totally wrong(democracy vs one party systems and all that) in practice you are absolutely right :-)