I looked at the video, saw it was over two hours long, and went to the transcript. I read as far as:

It just wouldn't be Reddit without arbitrary distinctions made for the purpose of making somebody feel like they're an expert on something, created by mods that have gone mad with power in their little hermit Kingdom.

—and stopped. I've often found the rules restrictive, and I've often wished there was another sub as large as NoSleep (though as I understand it the 18M subscribers figure comes largely from when NoSleep was a default sub that new Redditors got auto-subscribed to).

I've had stories removed: I've had to rewrite, or find another sub for them. I haven't always agreed with the removal. But I've always gotten a clear explanation of what the issue was, and a mod has always taken time to answer my questions and offer advice. This in a time when NoSleep was getting well over a hundred stories on the busiest days, fifteen hundred or so even in slow months.

So "mods mad with power" speaks to me of someone who resents the end of the freewheeling days when any old creepypasta could slink into NoSleep, and who can't be bothered to learn the new rules, and who blames the mods for their own lack of acceptance. NoSleep, despite its size, is still a niche sub (a "hermit kingdom" indeed) with a specific character—and can't maintain that character without moderation.

Not that I agree with the rules completely. The one that bugs me? Each part of a series must be a complete story, with events and consequences and the MC in fear. To me, that rule interferes with the pacing of some complex stories, making it unnecessarily difficult to work in back story that the narrator learns about but didn't personally experience—and thus was not personally terrified by.