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In the sense that we use user-based moderation, yes. However, Wilson is talking about a service that has no central server(s), and as such, there would be no control whatsoever about what kind of content was posted in the global feed. That is, child porn and other content that most centralized services would not host would be part of the aggregate data in such a service. While most users would opt to filter such content out of their own view, their client would contribute to the hosting of it.
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Have you read this blog post by Ryan Charles? He was working on this at Reddit for a short time. I am very interested in this.