I get what's going on, and I kind of have a stance. Though, I can't really side 100% with anyone. This is a lot of he said, she said, with some quotes thrown in.
My personal opinion: Right or wrong @she should step down. It's the graceful, smart move. Fuck Pao even figured that out. Eventually. Even if we got more info after she left. Maybe?
My point is this: If a mod really gives a fuck about the community they wouldn't be so stubborn. They would step down, and move on with life before they threw a fit to stand up for a personal ideal and let it divide the community. You are free to go on with your lives now.