This comment, by Reddit's General Counsel, says a lot about their approach. They believe that minorities/women will be subjected to nonstop violent comments unless Reddit pursues proactive and forceful moderation, free speech be damned. I think (hope) that's a very cynical view. The author of the piece does a great job juxtaposing this quote with the results of r/Place, however, in pointing out that it did not devolve into swastikas and "toxic" content when left to its own devices.
But reddit moderation is not just about quality content. I think many commenters here miss this. Moderation of a hugely successful website is not just about the technical issues or the logistics. Huffman, the CEO, is quoted as saying he believes Reddit can sway elections. So now moderation is about power. Imagine the temptation: you're one click away from destroying the popular, impactful subreddit of a political candidate you detest. One click to sway an election, maybe.
Edit: spelling