I am outlining my suggested moderation scheme to add to the debate.
There are two distinct categories of action.
There are fast response hides needed for insults on IGTNT diaries. There are sanctions in order to stop insults and the encouragement of insults.
For the hides, I suggest that Rescue Rangers be given the ability to hide but not unhide comments.
For sanctions, people would bring a case which would be voted on by DK users during some period of time perhaps 24 hours. If the users voted for a sanction (say a two week interval in which commenting is not possible), then the issue would then go to the site moderator.
The site moderator would be responsible for approving or vetoing the decision, according to his interpretation of the rules and his judgement as to whether "gaming" is in progress. The moderator would get feedback on his performance from kos who would take advice from the community in diaries as required. Cases could be brought against people for bad commenting, bad raising of cases and for Rescue Rangers who do bad hides.
People who continually bring bad cases could lose the ability to raise them.
As time went by, I think that the moderator would need to veto less and less. It could even be automated.
I welcome your feedback