I do not doubt that some really nice works get rejected at times for various reason. But even with all those that get through which seem questionable and those that do not which seem questionable, it does not seem to matter on iota that many really great ones do make it and that just as many people bitched and complained when there wasn't any moderation as there is when moderation is in effect.
Seriously, it is a damned if do or don't situation here as far as walls go, logons, and bootskins are slowly making there way into that situation also. But at least those two are products produced by Stardock or another Modification App Developer, Walls are not. There are Hundreds of Thousands of Wall Paper sites so it seems at some point that if people do not wrap their mind around the fact that some will make it and some will not. This site is going to hit the point of diminishing returns on having the section at all.
Hell when my son was 6 he was given Linking Logs for a present, he really liked them and yet we had to constantly pick them up. I finally told him enough was enough and if he did not pick them up I would throw them out "Go ahead I don't want them" he said instead of cleaning up. They hit the trash faster than he could blink and he was not allowed to take them out, gone....
In some respects this is kind of the same thing. This is NOT a Wall Paper site and it never claimed to be. If someone has issue with a submission they are supposed to email the moderators and discuss it in private to keep the fighting and such away from the board. Dragging it to the board does nothing but cause problems over time.
So, if it was up to me, people would either accept the moderation, or follow the guides of communicating with the moderators via email or the damn thing would be gone. simple as that...