I certainly don't have the answers (and let's face it it's likely going to be a problem here too).
So, like the current organisation of things, that works quite well? You put entirely too much value on moderators being perfect. Moderators have been biased forever, have banned for no reason forever. It's a website, you can live with that (or without it). If they're unreasonable, move away, find another place or create another place. If you can't move away, deal with it, create an alt, don't get caught doing the same thing that got you banned, and that'll be it.
This is true, and it's why the policy promulgated by the moderators was explicitly temporary. It was a response to an acute problem to give everyone time to figure out how to handle it as a chronic condition: https://meta.stackoverflow.com/questions/421831/temporary-po...