You guys did great! Nothing in the world even comes close to /. moderation.
Reddit is a prime example of a simple karma system going off the deep end. Instead of reinforcing good behavior, the trend is now that a substantial majority of the community competes for karma score. The noise level has increased sharply over the previous years such that the "popular reddits" are now in the same domain as Digg or 4chan. (Thankfully subreddits such as proggit are still an excellent source of information.)
I think karma works here at HN because it is a hidden score (to avoid the Reddit scenario) and the community heavily discourages low-quality posts. In a sense it relies directly on the userbase mentality and could easily be negated by a change in demographics. (Hopefully we maintain a high signal:noise ratio...)
/. meta moderation rewards users for moderating "correctly" and it doesn't consider the sum input of all users. It's not something that every community could or should adopt, but it certainly seems to have prevented a large fluctuation in community quality for well over a decade. It's also really awesome that comments are not just quantitatively scored, but also have qualitative tags.
Both you and Rob have effected the evolution of the Web as well as how we consume our news in more ways than we'll ever know.