There are sites where the moderation isn't bad enough for me to notice it, sure. SSC and Xenosystems come to mind.
The only non-blog sites I pay attention to anymore are this and a few forums, and the only forum that's big enough to need moderation is the one where the admin is incompetent.
The most common strategy I've seen besides the Hastings Banda one is the one where moderator action is only taken to enforce near-unanimous user opinion -- though often this isn't an explicit policy, but instead an artifact of most of the old regulars being moderators. If the mods are active enough with this strategy, this brings protection against the eternal September, but with the potential cost of exclusivity. Another failure mode I've seen is conflict between moderators, but I've only seen this happen once, and it was in a case where someone who really shouldn't have been a moderator was made one: he rarely posted, but had developed a relevant site and was friends with the admin, so he was made another admin -- whereas the moderators were everyone who had over 50 posts a few months after the forum had started, and the moderator position was initially created only to deal with spambots.
My stupid fanfic chapter was banned without explanation so I reposted it; somehow it was at +7 when it was deleted and I think silently deleting upvoted posts is a disservice to LessWrong. I requested that a justification be given in the comments if it were to be deleted again, so LessWrong readers could consider whether or not that justification is aligned with what they want from LessWrong. Also I would like to make clear that this fanfic is primarily a medium for explaining some ideas that people on LessWrong often ask me about; that it is also a lighthearted critique of Yudkowskyanism is secondary, and if need be I will change the premise so that the medium doesn't drown out the message. But really, I wouldn't think a lighthearted parody of a lighthearted parody would cause such offense.
The original post has been unbanned and can be found here, so I've edited this post to just be about the banning.