yes, however there is an element of real feedback: if an subreddit turns out to be garbage, then people will choose a different subreddit with a different moder

yes, however there is an element of real feedback: if an subreddit turns out to be garbage, then people will choose a different subreddit with a different moderation policy. It is possible to prioritize by number of point or by some dynamics over the popularity of an subreddit - that would incorporate this feedback.