I find it interesting that Toady's initial solution is to grant a moderator type power to all users. Self moderation seems to be the main push of the rules, and it is impressive that Toady is willing to trust all of us in such a fashion. I hope we can all demonstrate that such trust is not misplaced.
I am actually all for moderators on this forum. Another forum that I am a moderator of has roughly 3 times as many users but 1/3 posts. They have have been around quite a few years longer than this forum. Early in the devlopment of that forum a few moderators were chosen by its owner.
Over the years those moderators nominated other users for moderator status. Those nominated are allowed to accept or decline. All told there are 20 moderators there now, but only 3 are really active. Probably another 3 are in a lurking mode. The merits of potential moderators were all guaged based on how they helpful they are to users. As with the helpfulness that gained them reocgnition to be a moderator, all activities in the forum remain on a volunteer basis. It is actually a small testament to the moderators and users of that forum that most questions are completely answered in the first reply post.
What having moderators does do is free the forum owner from the burden of moderator stuff. Things that patently need moderation are dealt with in very short order. Stuff that is in a gray area according to the rules often take little more then a moderator saying, "Let's keep things civil."
When a user is a persistent irritation to users and moderators then we discuss them in a private moderator area. Generally to no specific end, but consensus in the discussion that a specific user is a problem grants more latitude to all moderators in responding to that user. The owner of the forums also partcipates in such discussions.
If the owner is irritated then we all definitely are, but remember we were nominated as moderators because we demonstrated a desire to be helpful to others. Forum owners often can not express irritation with a specific user without alienating other users. As moderators we can express a personal displeasure, and still have it slightly distanced from the forum owner. Just another service moderators perform.
Anything posted in the private area of the forum is given priority by the forum owner. If we point out anything as requiring specific attention there, then it would receive priority as well. This often helps to resolve issues for users faster.
Overall, when moderators are dedicated to the project that the forum is there to support they are a good thing. Guaging that dedication is the difficult part in selecting moderators. I would suggest that the sooner Toady starts the sooner his workload will be made smaller.