I suggest that before we go to separating the fly poop from the pepper we see how many people are willing to help the Mods out by taking up any load imposed on them by any new system.
Lets see how many are willing to do the work first. If interest is low, then it will never get off the ground anyway.
Those who are willing to help out will likely have no quibble with any geographic divisions. I know I am not. I'll even offer to Moderate in any area where such help is required, regardless of whether I live in it or not.