This isn't helped by the fact that the majority of popular subreddits are moderated by the same people, resulting in a kind of weird cabal situation.
I'm not sure what the solution is. Personally I think no moderation, simply relying on up/down votes would be better, but without going to that extreme, perhaps only allowing one person to moderate one subreddit (or a small number) would help.
This is because moderating is a shitty job and hardly anyone wants to actually spend time doing it.
>Heavily moderated subreddits are Reddit's biggest problem.
The problem isn't heavy moderation, it's poor moderation. Moderation is basically a requirement for any community of a decent size (and becomes more important as the community grows).
But as I said above, moderating is a terrible job. It's generally unpaid, a time suck, and you spend all your time dealing with the worst members of the community (which sometimes funnily enough also includes tends some of the most popular members of the community).
In my experience in the past, the people most vocal against moderators/moderation were the people causing the most trouble in the community.
I don't know that the "one sub per mod" rule would be a net win; responsible volunteer moderators are hard to come by.