I would disagree. While I am in favor of a special tag for moderators, I am completely against show of power or snobbish attitude.
So you agree to adding special tags which are a show of power ... but dont want mods to show power.
Make up your mind.
While snobbish attitude of mods may work at PG (and I am sure you know very well whom I am referring to) due to majority audience which are kids, it won't work here, or any other forums for that matter.
Haha ... thats a good one. Im sorry but which forum can you point me out to where moderators dont show attitude when they have to confront members not abiding by rules ?
And lol @ majority audience. I believe the number of Honda and Toyota wars on Pakwheels is obvious of the audience here. That and the tirade of spamming that goes on.
Just having your badges would exemplify any posted warning in a thread, helping to get it back on topic without banning anyone or locking a topic which may be useful Example a Civic Si new engine topic going from that to the a Si Vs XRS discussion ... not unlike the 'kids at PG' ... fanboys you know
Idhar Pakwheels ki behtri kay lyay baat horahi hai ... aapka PG par koee grudge utarnay kay lyay nahe.
EDIT in light of your edit
. While PG management may get away with harassing and insulting members, they too would be forced to change their attitude once worthy competition sets in
Ah yes jee thanks ... only confirms that your whole arguement here is the fact that I AM suggesting this and you obviously have a grudge aganist PG.
Would you please keep your grudges aside, and get back to the actual suggestion ... which ... may I add ... YOU AGREE TO IN THE FIRST PLACE ? 
Talk about trying to take out a grudge ... you agree with my suggestion ... but add up stuff like abusing, insulting, use of power blah blah when I never even suggested that! Kudos to you mate, kudos!
All I suggested was to give a slight show of authority so people really note when they are being warned by moderators. Since you like to compare to other forums, go ahead and compare to other forums ... everywhere moderators and admins are HIGHLIGHTED to be so.