It would be nice, I think, if there were more ways for the members of a community and instances to interact democratically with the rules and moderation.
I.E. Mod elections, being able to put users bans up for vote, vote on sidebar changes, vote on feature selections, vote on when or if to stop accepting new users, etc, etc.
Basically anything a mod or site admin does being up for democratic vote, even if it doesn’t generally need to be extended to all the users (because of possible brigrading or fake users).
Seems like a solution looking for a problem. Besides having the ability to create (or ban) an infinite number of accounts to rig a vote, instances have an incentive to keep the quality of content high.
If an admin wants to put something to a vote, they can, but even with a vote you can’t force an admin to do what the community wants.
I think a lot of the potential problems this could solve can be better solved in other ways, i.e. account migrating to let people bail on an instance they don’t like.