Fair points, but the comment "because the moderators volunteered" made me cringe.

I have a great deal of respect and sympathy for mods because I've helped moderate other forums and the task is both rewarding, unrelenting, and filled with ceaseless drama. Even though they volunteered I still give them a lot of credit if they're running a successful board. It takes a lot.

I'm really intrigued to see if you're correct and we will eventually see mechanisms to replace mods. StackOverflow has moderator elections yearly, but the company has a tight control on the direction of the product. Mods have a lot more freedom to dictate the course of a board so I don't think elections would work for every board. Would be interesting to see though.