The same is happening to Hacker News, too, or it has already happened, though not as severely: Hacker News has an advantage in that its survival and the intelligent commentary on it is tied to a business that is in turn tied to ideas. Its moderators have a stronger incentive to get it right, since they’re not driven primarily by ego or overwhelming fear of “spam.”
I don't know much about the back end here, but the lead mod on Hacker News is a paid position. He takes his job seriously and he does good work.
I suggest you take this post with a grain of salt. I think the author is unaware of some things.
The moderator problem is real and the fact that most moderators are unpaid has issues and I've talked about that on and off over the years. The fact that HN has paid moderation is one of the reasons it's better than most other spaces.
The fact that the author imagines Hacker News has slid into the toilet makes me feel the author doesn't really know that much about HN.