Gawker, a publisher, was shut down because it reported on Hulk Hogan's sexual activity. I think we can assume that larger publishers would be shut down for more outrageous content.

Yes, obviously, manual approval of content does not scale very well. Scaling is not a good in itself.

Decisions will only be as "wildly inconsistent, subjective, and controversial' as the people responsible for them. This should allow for consistent, objective, and responsible people to rise to the top in the decision making process, no?