if this is the same forum i'm thinking of (you seem to have avoided naming it so i'll do the same), they really do have a bizarre approach to moderation - almost nothing seems to be off-limits other than spam, personal attacks, and... discussing moderation. i've posted there since 2007 (and have been a moderator myself there for the last few years) and have never seen them really deal with the subject productively. i think they are a small inner clique that just sort of uncritically takes for granted the fact that they are moderators and don't really have a foundational set of principles that guides their moderation. in that sense your 'tinpot dictators' description is all too apt.