In practice I don't think this really changes anything at least for moderation. It takes a bunch of time and effort to moderate online communities - under the process outlined by the post you linked most communities are going to have a single effective clientside moderation list you can subscribe to anyway.

Totally unmoderated internet communities would be completely unusable because of spam, and it's also questionable whether you could even stay up with no serverside moderation - you'd have to delete stuff otherwise it just takes one script kiddie with a botnet to flood your disk space with garbage.

(User produced ranking/filtering algos though I can see being viable)