I agree in principle, but its a really bad thing to encourage people to dedicate free time to a thankless job because the only people who will endure it are those with agendas, power trippers, sociopaths, or anyone else bored. In my own experiences and talking to others, mod fatigue takes over after some time.
Community websites are really bears the bigger they get.
In reality, reddit should have its own moderators on the payroll with its own moderation policy. They did this once before, but the person was of questionable background. Instead of trying to fix the policy, reddit just went back to the unpaid landed gentry.
Mods getting paid for their work does not fix the problems they have being unpaid as-is. That requires strict moderator policies, moderation logs, a proper appeal/arbitration process, and even then its not going to be 100% fair. There’s not a whole lot reddit can do at this point even if they went back to paid mods. Which they won’t, because they’re now in the tail end of the company’s lifecycle: Gut everything so the founders can exit, leave the suckers with their shit product.