I've heard various ideas such as limiting it only after mods have expended their points (this will require implementing a cooldown to prevent a user from getting points again too soon). I want to hear your feedback, and I'll roll together something for the next major update of the site. Leave your comments
Uhh, so how about this, post distance is calculated as minimum number of moves from current post to another post, moves being going up to a parent or going down through to a child.
Then, you say, you may not moderate any post that is within 5 moves of a post you made. Top level posts are considered not connected to each other.
If I need flowcharts to explain why you can and can't moderate system, I think it fails the simplicity test. Moderation is supposed to be quick, easy, and painless, not requiring brain surgery, and a deluge of posts that "I can't moderate X"
/me drives tractor over posts
Seven Degrees of Soylent Bacon?