The federation itself alleviates those problems.

Those problems, in Reddit, ultimately backtrack to the fact that the Reddit admins give no fucks about the users. Why would they? Even if the users are used and abused, network effect still keeps them in Reddit, as they don't want to lose the content.

The same does not work here in Lemmy, due to the federation: if the admins of an instance are arseholes, negligent, or otherwise bad, their users will simply migrate to another instance. The users won't lose access to their content, and they know it.

And in some cases, admins of other instances might even defederate the instance with problematic admins, to protect their own users. (Specially useful when it comes to harassment, as harassers tend to gravitate towards the same places.)

So for example. In Reddit you got the powermods going rogue, being abusive towards the users, and the admins went like, "NOOOOO THEY'RE A PRECIOUS PART OF OUR COMMUNITY". Until the powermods turned against Reddit itself; then the admins took action. Here, the admins would need to act as soon as the powermods become an issue for the users, not just for themselves.

Additionally: it's hard to power-trip when you got a public modlog telling people what you did.