The problem with powermod isn't that they exist, though. Moderation of a large sub is still done by volunteers that have had to hack solutions together because they don't get a lot of support from Reddit. It helps Reddit to have experienced mods overseeing several subs because they bring with them experience on how to handle high profile and large scale moderation efforts. They are a technical talent pool that Reddit relies upon a lot.

The problem is that Reddit has shitty mod governance. It still uses rank by add date and offers no ability for users to kick a mod out except for TOS faults. Reddit doesn't want to fix mod governance issues because it creates a legitimate mod power structure and Reddit doesn't want to give that much power to users, including mods.

That said, Reddit's shitty mod governance was copied directly to Lemmy.