I should have elaborated more originally.. I suppose part of me wanted to be asked.
Moderation used to work well, because relatively small communities (forums and game servers) included moderators, who were users that also actively participated in discussion. That model is incredibly rare today. Instead, we have a tiny coalition of corporate giants who own (monopolize via copyright) the overwhelming majority of discussion content and interaction platforms. On these platforms, traditional moderation has been replaced with corporate censorship and automation, which in turn are driven by corporate goals (advertising) instead of genuine participation by moderators.
It's my assertion that this is a natural outcome of copyright itself. Copyright demands that content be exclusively owned and profited upon; therefore interaction must be siloed and incentivized accordingly. Even free (as in beer) interaction must bow to this pattern eventually.