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this post was submitted on 07 Oct 2023
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It doesn't have to have a fair appeals policy, but an instance that has an appeals policy is one that you would probably want to join more. So an instance should have a fair appeals policy, because that's what the users who use the instance want - assuming the instance wants users.
As for what reddit did, there's a lot of pulling the rug out that you're casually ignoring. Reddit is what it is because of the users that contributed to it. In spite of Huffman talking about "their dataset", they don't actually own the data - it belongs to the users, reddit merely has a license.
Now, reddit is trying to change the rules - as a user, you're no longer in charge of the subreddit you created and became moderator of anymore, you're expected to serve "will of the users" (as defined by reddit admin), the users you attracted to the house you built. Reddit was founded on the idea "if you don't like it, make your own space, and users will flock towards the better one".
Reddit changed the moderator code of conduct. And yet, if you strictly apply the moderator code of conduct as they sometimes do, it completely undermines many of the bans that reddit admin also enforce. They're hypocrits, now all they want is to exploit everyone that put them where they are.