I think you misunderstand how stackoverflow works.

Super moderators are elected, but not your regular "moderators". In stack overflow, regular folks you have enough karma are moderators and can cast votes, or initiate voting on moderation action. Enough votes and the action happens.

The elected moderators aren't the problem, generally, it's that anyone with a bit of karma can go power tripping and if you get enough of those people on an ever growing platform, they reach a critical mass to stifle anything.

So yes, some moderators are elected, and yes moderation is very democratic.