I said that because I think that being a moderator is quite a bigger responsibility than being a Merit Source, since a Merit Source is only responsible to choose the posts that he thinks are of quality, but a mod has to decide if a person or a post needs to remain or to go. But of course as you said, theymos has all the stats and there are already a lot of trusted users who are ready to dedicate their time to this cause. So it should not be difficult for him to choose some hard working mods around here.
The reporters would absolutely lose hope if there is no manual patrolling going on in boards like Bitcoin Discussion or Altcoin Discussion etc. where if you report one post, meanwhile, 10 more posts are submitted.