What lets you think "a bunch" of mods would misuse it? This is not politics, they don't gain anything by banning people. Jus take a look at how this forum is run. Exemplary. All the mods are long term players who care about the game and the community. They don't get anything for being mods, only the previledge to support the community. There is no corruption or anything like that happening, what lets you think it'll be any different in the game?
To say they don't gain anything by banning people is an understatement (and a possible fabrication). They gain adrenaline and a feeling of power they don't have in real life. Silly as that sounds, most people will do anything to even have a little of them.
Dictators (hyperbole, I know) also do petty things to support their inferiority/superiority complex like organizing lavish parties and sport events while their people starve.