Moderation by the people for the people is exactly what we have now. You think Medium or Facebook want to put so much effort into moderation? Their moderation is merely a reflection of what most people want, and when it strays, they are punished and shamed by the masses. Journalists, advertisers, and users start yelling at you for allowing [insert unpopular group here] to mingle with the rest of them.
Ironically you'd likely need a more dictatorial platform to avoid censorship. You'd need a strong dictator to resist the censorship demands of the people. What we have now is a tyranny of the majority.
Maybe they shouldnt be allowed to operate?
Maybe this is why we cant have nice things.
Maybe, we need to come up with some other platform type where moderation is by the people for the people.
Regarding what we have now, its a dictatorship.