Well there are localized social networks in countries where Facebook is blocked or just unpopular. WeChat in China, VKontakte in Russia. I'm not sure that's any better?
What does localized even mean anymore, and who should decide whether someone is sufficiently "local" to qualify as a moderator?
Devolving moderation on national level (as opposed to centralized global) would be a start, but also self selecting groups. If you choose to be in a Singaporean page, group, forum, etc., you abide by their localization.
But what does that mean for a global group? Seriously?
For example: I help run a large art group on facebook. (Large = 76,975 members). While the breakdown of our group shows the largest percentage of folks in the group are from the US (20k), lots of folks are from India (15k).. and the rest are from elsewhere in the world. We list ourselves as global. The unpaid admins and moderators are from different countries and times zones. We use Translate functions at times.
What localisation do we have? Do we have a choice? If one admin is in Norway, can we use a Norwegian model of nudity censorship instead of the more restrictive American or Indian or Facebook models of "acceptable" nudity? Can you list locally with one admin even if your demographics do not fit? Do large countries always have the advantage? If demographics change, does the censorship style?
These are all issues with "local" or national level censorship, and I dont' think there is an easy answer.
What is a "national" level? What nation should set content moderation standards for conflict zones and disputed territories such as Palestine, Tibet, Taiwan, Syria, Nagorno-Karabakh, Kosovo, Western Sahara, etc?
How about territories within nations? Should the same moderation standards apply to Mississippi and California?
There are no clear right or wrong standards here. Any changes are as likely to make things worse as better due to unintended consequences. The Facebook employees in Menlo Park have made some bad decisions on occasion but they at least try to do the right thing most of the time within the constraints imposed by their business model. National authorities often have more sinister motives.
What does localized even mean anymore, and who should decide whether someone is sufficiently "local" to qualify as a moderator?