Moderators aren't demodded for lack of activity ever because once they've been trusted with administrative priveleges on the site it generally doesn't change. De-modding someone for being inactive basically says to moderators that they have to stay active all the time if they want to remain a moderator, and as a result most will burn themselves out over it.
Wade doesn't want moderators burnt out on moderating.
Oh, and 50 moderators isn't all that large of a number considering the forum's numbers. (9,935 posts made yesterday, by 1,492 different users.)
Almost 10,000 posts a day by 1,500 users? That means moderators should be seeing upwards of 200 posts each a day, and covering 25 users each. I think that's a fair amount, considering the mature posters are the ones that also have outside obligations.
ALSO: I don't know if that stat includes threads and posts that get deleted daily or not. I suspect it doesn't, which means we're moderating a lot more than the numbers show (probably a thousand or two more posts daily).
I think we're right where we need to be, factoring in moderator inactivity.