I think if you look at real-world examples with an actual history like reddit... you find that reality is complicated. All those problematic reddit dynamics that you describe exist. But, there were also some advantages/successes to their "moderation" approach.
Above all, these approaches aren't just good/bad or successful/failed. There's a ton of texture. The moderation approach dictates a lot about the platform's character, and that isn't captured by binaries or spectrums.