My 2 cents and suggestions...
User titles: Scrap what you have and start something new. It's a military forum so go with military ranks starting at E-1, E-2 all the way up to O-9. Set the post count to reach O-9 to the current highest post count (which is Shrike with 11,070 right now). Then take the remaining ranks and divide 11,070 by that number. Then you'll have the post count increment to obtain those ranks.
This idea will most certainly piss some people off so if that idea is a bust go with generic ones like: Newbie, Junior member, Average Member, Senior Member, Master in Training, and Master of the Forum. Google theadminzone for ideas on user titles. They have a ton of them.
If none of that works, get rid of user titles all together and go with bar ranks like this: http://mods.mybb.com/uploads/preview...67-screeny.jpg
Whatever is done, I'd sticky a thread in this section of the forum so everyone knows about them.
Moderation: It needs done and nobody will ever be fully happy with it. Every board handles it differently and this board is finally allowing them. If I'm not mistaken, the discussion that was agreed on (or implied) was the moderators would be trusted regular members but would have an alt account so other members wouldn't know who they were. If this is the case, then they shouldn't be taking on a second identity with clever handle names, avatars, and signature quotes. They should strictly be using that account to close, move, sticky threads. Take the character out of them and you might find less trouble down the line.
Moderators are needed to help keep your sanity. Just make sure they don't crush the conversation, instead just moderate it.
Finally, please fix the like, dislike thanks buttons to allow us to undo an accident. It can be done in the admin settings of the mod. I believe it's DBT's mod that you are using.