the media is an observer not a participant in government
I haven't read Moldbug, so maybe you mean something else by this than what it sounds like, but I don't think I know of anyone with an interest in politics who'd agree with this statement as written. Pretty much everybody thinks that the media has a huge influence on government, up to the point of often determining what decisions the government can make, and which politicians grow popular or fall out of favor. There's a reason why it's called the fourth estate.
I think Moldbug's main point is that even if cynical people acknowledge that the media often uses its powers in biased ways, there's still an ideal that the media should be this fair and balanced impartial observer that just provides information and then lets the people decide. Moldbug beleives such an ideal to be naive and unworkable: the media will allways be biased, and will always use its powers to influence the secular political enviroment, and expecting it not to grossly misunderstands what the media actually is, how it operates and what its incentiv...
I've seen several people on Less Wrong recommend Mencius Moldbug's writings, and I've been curious about how he became so popular here. He's certainly an interesting thinker, but he's rather obscure and doesn't have any obvious connection to Less Wrong, so I'm wondering where this overlap in readership came from.
[EDIT by E.Y.: The answer is that he's not popular here. The 2012 LW annual survey showed 2.5% (30 of 1195 responses) identified as 'reactionary' or 'Moldbuggian'. To the extent this is greater than population average, it seems sufficiently explained by Moldbug having commented on the early Overcoming Bias econblog before LW forked from it, bringing with some of his own pre-existing audience. I cannot remember running across anyone talking about Moldbug on LW, at all, besides this post, in the last year or so. Since this page has now risen to the first page of Google results for Mencius Moldbug due to LW's high pagerank, and on at least one occasion sloppy / agenda-promoting journalists such as Klint Finley have found it convenient to pretend to an alternate reality (where Moldbug is popular on LW and Hacker News due to speaking out for angry entitled Silicon Valley elites, or something), a correction in the post seems deserved. See also the Anti-Reactionary FAQ by Scott Alexander (aka Yvain, LW's second-highest-karma user). --EY]