Earlier quoted context omitted.
> The days of ... Digg losing to Reddit are over. I disagree. Especially somewhere like reddit where the power lies in a relatively small pool of moderators (ie. a couple of hundred people), who aren't well controlled by Reddit the company. These moderators could, if they organised together, kill the site in a matter of days. And I'm sure reddit-clones have been approaching the moderators with lucrative offers to do…
Surely, Reddit would just remove and replace these moderators at the first taste of real pain. Yes?
If the former is true, the moderators aren't really "replaceable" in that way. You can fire them, but the output of your product will suffer as a result. In that interpretation the moderators are actually some of the most important customers of Reddit - they produce quality content in return for free hosting and occasional assistance.
If the latter is true then you can just fire them and it doesn't matter...but it kind of seems like no one believes that? If Reddit really thought they could fire them they probably would have just done it? I don't know what the truth is but I think the former interpretation dominates thinking.