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Principally (basically meaning: "as long as it can still make sense in terms of UX") I'm with you on both counts (right to set rules, and removal of territory association). I'd gladly orphan slop out of ~AI by refunding my 70% of the post cost, instead of downzapping it.
But the other day, when @grayruby said some things regarding territory usage that I did not expect, at least not coming from what I consider to be the most developed sub-community on SN, I am no longer sure if territories are still communities. I think they ought to be, but perhaps, since cross-posting, that has lessened and territories are more like labels to categorize posts on the front page now and maybe like a feed to subscribe to - but with the slop the latter is tedious too.
If it (socially) develops further into a label and away from community, there will be increasing value in curation. No one except whales is going to spend time on curation if money is the only moderator though - it's extremely annoying (and can get expensive) if you need to defend your post against trolling.
I’m just thinking about it from the standpoint of territory owners having the presumed right to set the rules for content in their territories.
That may result in certain cross-posts being impossible. I believe that could happen now with item type restrictions in territories.
I’m not sure what should happen to a cross-post to a moderated territory that gets removed by the moderator. Either it gets entirely removed (all moderators have veto power) or only that one territory association gets removed. I lean towards the latter but I could be swayed towards the former.