But here's the fun - the community is firmly devoted to flaming other people. All of the peer moderation will be based upon this goal. Dumb comments about being gay or plain profanity will typically be moderated as -1 Droll, while ripping condescending lines from hip alternative TV shows will be rated +1 Snob, Obscure Reference. Being completely blasted on every factual element could get you -1 Owned, while doing the owning would be +1 Immolator.
What would get the fun started? Every "news" stub would be a troll, submitted by some brave user, who has a stake in defending against the onslaught (ok, so maybe this is a complete rip off of Slashdot). You could implement some system where the first 10 highly modded flames become official "shots fired," and the poster gets 1 chance to respond to each of them. The peer review scores these 10 shots fired and the responses, and the poster's rank in the community is adjusted accordingly.
Instead of capping your karma at "excellent," we'd keep a far more open ended score that also goes negative.
The possibilities are endless. This idea came to me because I had a really craptacular day and really, really wanted to just flame the hell out of some innocent internet bystander. Instead, I came up with this idea and jotted it down. Does this utopia of hatred already exist on the internet? If not, I thought of it first.