What I see as the issues:
1) The TOS is terrible. At least in terms of online message boards, it's not a good TOS, it reads more like a legal disclaimer, which shouldn't be what a message board TOS is for. The better TOS' on the internet go through the rules on each section, in terms of what is spam, what is defamatory, etc. The only ones that don't have a much more open TOS, in the sense that those places police themselves or have one or two golden rules.
2) The mod to user ratio is bad. There's one mod to ever 350 users, which is a ridiculously small ratio in my experience modding elsewhere. This could lend itself to overmodding, but I don't know about site stats or what board ops are in place
3) The mod base is a rather steady constant and unchanging, for the large part. I only joined up four years or so ago but it seems that it's been the same mods for onto a decade or so. I can see how this can engender a contentious relationship between a userbase and mod team, as I've really never been involved on a board that didn't regularly rotate moderators (admins are a different issue, but around here it seems an interchangeable distinction)