Moderators have more influence over the direction of FlyerTalk than the TalkBoard. TalkBoard is largely relegated to making suggestions about the layout and running of the FlyerTalk community, which the House of Miles is free to implement or ignore (as I said in response to Question 5, the power of TalkBoard is granted, not inherent). The moderators have responsibility for the day-to-day interactions within the community. The system is similar to a non-profit or state agency with a Commissioner or Board and a Deputy or Executive Director. The Commissioner or Board makes slight “big-picture” nudges in the operation, while the Deputy Commissioner or Executive Director is in the trenches overseeing the grunt work.
Given this analogy, should moderators be elected? In my opinion, no. Moderation works through consistency and the moderators (eventually, perhaps) being in-tune with the community they moderate. Imagine the chaos that would ensue if one year the Thingamajig forum elected moderator whose platform was more laid-back, anything goes, and then next year decided to go with a strict disciplinarian, and the next year goes back to the free-for-all candidate, and so on...
I don't really see the current moderator corps as dysfunctional or otherwise broken, so I believe the current appointment system works.