Having player moderators is not all that bad, a few online gaming companies do this. They are supervised by paid Community Managers, so things do not totally get out of hand with favouritism. They do however use a vetting system, and trail periods so the final selections wind up being a good moderator for the most part. Also generally they have rules in place that prevent conflicts of interest. I would have no qualms if they picked a few players to be moderators, as long as they did it properly.
As for Roman God Camper being a Moderator, I think he genuinely likes to help, and gives good answers 97.5% of the time, but I do think he does need a bit of maturity and practise working with the public and all of the different personalities you encounter. When you are a Moderator you have to help everyone, whether you like them or not, and no matter how much of a pain in the neck they may be.