I’ve never seen the moderation panel

That’s part of your problem. I commend you for putting so much thought into this, but it seems like there’s a lot of areas you’re missing. I would’ve expected a person pushing something like this to have A LOT of experience with the very thing they’re trying to change so drastically.

I’d say go be an admin or moderator for one of the bigger instances. I’m sure, with more experience, it’ll help better shape your perspective or even change it entirely.