My prediction that theymos so far didn't found users who would be capable and competent to be a mods of these boards.
For 3 of the local boards I mentioned earlier, I didn't see a sign (that he was looking for one, unless I missed it) and for the other one, considering the time he created
this thread, I find it hard to accept that there's no one to fit for those criteria.
For example - Politics & Society (one of the worst boards nowadays)
Basically it's "Off-topic Version 2".
Giving a chance to a selected mod for a limited period (kind of trial period) could be a temporary solution (no power - report directly to another mod)
Then there's no reason to promote someone since they will basically do what others do (directly reporting to a mod is similar to using the "Report to moderator" button).
It probably isn't a mandatory requirement, because in the cases where there has been demotion (I was unaware of these, just going off your OP) it would be unfair to delete the entire board; probably more work than reward, too, because the board will inevitably rise again in the future.
I wasn't going for deleting a local board due to lack of a moderator.
I can't say for sure, but it is probable that they pick moderators, in part, by how actively they participate and patrol that particular board.
I've noticed few of the promoted moderators, haven't been that active in participating on their own local language threads (those located in "Other languages/locations") prior to creation of their local language boards.
There would have to be a period of activity in order to determine who would fit the criteria and rise to the top, so naturally this leaves that board without a moderator until all of the criteria are able to be considered.
That's the issue. These things should be considered prior to creation of those local boards, not after. I'm sure there's a way to measure each user based on where they are (regardless of VPN usage and etc...), so they can be monitored prior to creation of these local boards.