The tech side of literotica seems ok to me. I like the old fashioned interface, from the era when stuff actually worked. The word "enshittification" was invented basically to describe the "modern" web.
As for the need for premoderation, I'd defer to Laurel, but I do know that the two main fanfiction sites (fanfiction.net and ao3) have no premoderation and no big money backing them, and don't seem to have major problems as a result. I'd guess (don't know for sure) that both have more content and more traffic than Lit does, though it is mostly not erotica. They do have a lot of crap stories, but there is good stuff there too.
As for the need for premoderation, I'd defer to Laurel, but I do know that the two main fanfiction sites (fanfiction.net and ao3) have no premoderation and no big money backing them, and don't seem to have major problems as a result. I'd guess (don't know for sure) that both have more content and more traffic than Lit does, though it is mostly not erotica. They do have a lot of crap stories, but there is good stuff there too.