I may be wrong, but are you referring to player forum mods? I've seen a few MMO's in the past that handpicked veteran players and gave them special moderator privileges. The idea was to help better control the boards when the company mods were off duty and to foster a more closeknit relationship with the community. It would be very similar to the idea behind our own player council. Except they would have the power to give infractions or ban at their discretion.
The problem, however comes into play when people have issues with those who are picked. Also, there is always the looming stigma of favoritism (One MMO board in particular had a huge argument over the fact that the picked player mods were all RL friends with the community manager.) So I can't say for sure this would be a good idea here in light of the recent events. Plus, I seem to remember seeing people here take issues when certain council members were picked, so I can only imagine what would happen if those people had banning privileges.
Anyway, I hope I'm right and this is what you mean. If not, just take it as a tl;dr lol
-[B]Fence Sitter of Eriador[/B]-
"[I]All the things I really like to do are either immoral, illegal or fattening.[/I]" - Alexander Woollcott