I do think we can afford to cut down of moderation. The primary issue with OT (which I outlined above) cannot resolved by traditional methods of moderation. The only way to up the quality of OT in the face of waves of obnoxious trolls is to add better quality active posters into the pool.
There are people who were so much more valuable to the community as active posters than as moderators who hardly ever post.
Or cut down on infracting stuff that, in the long run, isn't that harmful and get tougher on the nasty stuff. I'm sure at the end of it nobody will worry about one or two meme images getting posted (as long as it doesn't get excessive to the point of those being the only posts). But they will worry if people get away with trolling others -- or trolling their interests, etc. etc. (which, depending on ones opinion, could also be insulting them). I've been down before. I ain't going down again.
At times its particularly vexing, especially when the moderating in some threads seems to be depending on the OP. In fact, several months ago, I was basically told to stop posting in my own thread despite other people going horribly off-topic and changing the focus of the thread (which I had stated clearly in the OP). It was not legitimate topic drift, it was an attempt to drag the thread off-topic. Yet I got told, basically, to shut up and deal with it. Yet, some months later, I posted one vaguely relevant post in another thread and got infracted for it, despite it being at a less severe degree. Oh, it was popular members who dragged my thread off-topic.
Either you should have dealt with both or neither. But not one and then not the other. It seems it depends on how much such-and-such a moderator likes you.
I won't even mention which threads these were because this is getting awful close to a PDMA.
At times, I wish there was a mode for moderators so they could not see who was posting a specific post and it won't influenced by that. But then they might notice distinctive writing styles (or my strange grammar and vocabulary) so it might not work.