I'm just going to elaborate on this a bit, try to explain all of the basic ideas that fight abuse and promote honest voting.
They aren't really portal mods, as in moderators. They're more like mods as in "models." Their vote is the "model vote." Basically, when they vote, their vote doesn't just go into the calculation of the submission's score, it also goes into a separate "model vote" number. If the model vote is higher than the threshold, then everyone who voted 2-5 will get a protection point, 0-1 will get nothing. If the model vote is lower than the threshold, everyone who voted 0-1 will get a blam point, everyone who voted 2-5 will get nothing. Whether the submission passes or gets blamed has no effect.
The submission's score is still the same, but the points given are now based on the model vote, the supposed "ideal" average made by the trusted portal mods. Portal mods don't have any special privileges, they can't blam/protect a flash any more than any other user, they can't delete submissions, they can't ban people from voting or anything. All they do is collectively determine which people get the points. The model vote could be hidden just like the regular vote is hidden while under judgement as well, in an effort to keep the portal mods even more honest.
Then, there's the portal mod mods, or the model voter moderators. They don't contribute to the model vote, and also have no effect over the score/fate of the submission. The job of the portal mod mods is to appoint portal mods. Maybe there will be an application or something where people can apply to be a portal mod, and the portal mod mods will decide whether they can be or not. Since Wade has said that admins can see people's voting histories, the portal mod mods could have access to this information. They can look for patterns, biases, and whether the applicant has a general idea of flash quality. They can either approve or deny the application, as well as remove a person from the portal mod position if they find a pattern of abuse in their recent votes (such as clearly 5'ing spam submissions).
Basically, since the problem seems to be the fact that people get rewarded with points for going along with the crowd, no matter the quality of the flash, I think this would be a way to get people to focus more on voting based on quality. If they know that the portal mods are voting based on quality, and they want the points, they're going to have to vote based on quality as well. This way, there's no real "flash moderation" and it's just a measure to try and keep people honest if they want the points.
It's not a system based on control like most moderation systems, it's more of a way to change the incentive of getting points from voting with the masses to voting based on quality. If 10 portal mods vote 0 on a spam submission, and 190 regular users vote 2-5 on it because it's by a known spammer that has dozens of submissions, so they know it'll pass.. Even when it passes, they won't be getting any points. In the future when they see him submit a new flash, they'll vote 0 based on the quality of it since they know the portal mods will be voting 0 based on the quality if they want the point. Since many people only really vote for the points, and not the flash itself, this takes the reward of points away from the act of following the crowd, and gives it to the act of voting on quality.