1/ Moderators aren't always aligned with the community (see recent /r/antiwork scandal).
2/ Reddit does not pay moderators for the labor they provide. Moderation is basically a job that takes hours of time and they profit off the backs of that free labor.
At best, moderators will be influenced by corporate paychecks and at worst be exclusively composed of privileged people that don't need to work.
This is the reason we pay politicians.
For instance, if my instance has a rule that “nothing related to feet may be posted on No-Feets Friday”, I might decide to block foot.celebration for being a hotbed of constant footposting regardless of the day. If you disagree with my choice, there’s a ton of other instances out there you could move to, or go get foot.party and start your own. I might block these Friday-Foot-Friendly instances as well; if enough of my users decide they want to talk with people on those instances then I might suddenly find myself with everyone leaving. If sentiments are widely split on the subject of Feet On Friday then we might end up with two groups of instances that largely don’t federate with each other over this matter.