Using the level of activity in a community as a guage for someone’s fitness to moderate seems like a bad idea. There’s no connection there.

Squatting is a good thing - it counters bias

It’s a much bigger problem to find non-biased moderators (squatting or not). If PepsiCo creates and moderates c/pepsi, it invites corruption because obviously PepsiCo will censor posts critical of Pepsi. Squatters create several forums, and thus tend not to be biased. E.g. say a squatter creates c/pepsi, c/coke, c/drpepper, and c/microsoft. They are likely not affiliated with those companies, and can serve as a less biased moderator than the representatives of those companies who would like to control the narrative to favor their profit-driven bias.