This episode exposes a weakness in Reddit's overall structure, namely the opaque process whereby moderators are chosen. When domains are banned completely and against the wishes of the broader community it shows that Reddit's otherwise democratic processes can be fairly autocratic.
The solution is a system where users can vote on who is a moderator. Between this and /r/worldnews Banning of Russia Today it is apparent that moderators have far too much power over the content of various subteddit's.
Such voting could be limited to once per month, and two users who have a certain karma. There might even be an opportunity for a competitor site which does this very thing.
Edit: The number of moderators should be a function of the number of subscribers as well.
The solution is a system where users can vote on who is a moderator. Between this and /r/worldnews Banning of Russia Today it is apparent that moderators have far too much power over the content of various subteddit's.
Such voting could be limited to once per month, and two users who have a certain karma. There might even be an opportunity for a competitor site which does this very thing.
Edit: The number of moderators should be a function of the number of subscribers as well.