The market will decide whether mods are in the wrong or not. If you feel like you have been wronged by power tripping mods then feel free to start your own instance and own community and people will join if the situation is that bad.
Having an election for mods is redundant when federated networks are democratic by their nature and how their users use them. Having an “election” is potentially less democratic because it’s an arbitrary vote rather than letting people vote with where they decide to hold their accounts and the subscriptions.