To be clear I agree with a lot of what you wrote here so this is just a small nit:

> What other options do those who do not want the town square to be moderated by you have?

Start and visit a new subreddit. This is an important bit that gets covered up by metaphors like "landed gentry" and "peasants". Don't like it? Vote with your digital feet. It doesn't come with any of the baggage and complication that an equivalent real life move would have. Just stop going there and go somewhere else. Yes it would be nice if folks were awesome and tried to be awesome. The reality is they aren't and subreddits are property owned by the mods. Luckily, you don't have to be there.