Good post Bz.
The idea of a game moderator with “squad bias” seems absurd.

Or "should" seem that way.
What is the purpose of a moderator? Aren’t moderators supposed to keep an eye out for rule breakers and the occasional over-the-top trolls? Aren’t moderators unpaid volunteers who give their time “policing” the game servers, forum and world chat to try to ensure that people who want to enjoy the game can do so without constantly dealing with jerks who would rather harass and ruin games than play by the few rules that exist? Why should that have anything to do with “squad bias”?
If people would just play by the rules and let others play how they want within the rules, there would be little traffic on the blacklist thread. It would only be reports about those who find ways to be offensive while avoiding the foul language filter or who have found new ways to actually “cheat”? (At this point this should be for things like tanking below the water surface and destroying the carrier from below where no reds can get to them, or people somehow sabotaging games for their own teams…)
If a moderator does a good job why should squad affiliation have anything to do with it? Could it be that dogfight has become internally political?

Do we have to be afraid that people may have some sort of ambitious reason to be a game moderator? Are they doing it merely so they can give some advantage to their own squad?
Have you noticed now that Zuperman has installed the foul language filter and the auto-kick for many types of teamkilling, the need for moderators has been largely reduced? Other than the persistent trolls, the game mechanisms largely police the game automatically. Maybe it’s okay that there aren’t many mods anymore.
If squads want to have their own “rules” that’s fine for a them to insist that their members adhere to them. If that is their focus, shouldn’t they encourage the rest of community to report back to the squad if members are seen breaking their own rules? The reality seems like the opposite situation to me. Lol! I seen several situations where someone tried to report “deviant behavior” to the players’ respective squad only to be castigated and told not to post on their thread or that reports were considered invalid without “proof”! I suppose that it’s human nature to "shoot the messenger" and stand up for your own tribe.
The really pathetic thing is when players/squads try to enforce their own etiquette as rules that all players must follow. If the moderators get pulled into the fray isn't it a huge waste of their time? Perhaps this is where the “ambitious” (those with motivations besides just enforcing the game rules) could become an issue. We should all hope that the moderators are above all of that. I’d like to think that anyone with the interest of devoting their free time to becoming a moderator is doing it for altruistic reasons, but is that really the world we live in?
Is something rotten in the state of Gretchland?