1) The lack of control. You would give a single person the right to change the lore of the whole mod. And single persons with not strictly limited power never do their job in favor of others. Why should they even.
Without another instance (or others on the same level) it would lead to problems.
(especially if the person isnt even known to the community)
2) Deciding the outcome of events due to player counts/mass of RP or anything playerbase related will kill off small factions. I think of the Gaians for example. They have good RP and are quite a stable faction (from what i see) but they are low in numbers. Other factions dont even have an active playerfaction.
The current system is ok since enought players ae involved to hinder single persons to decide alone.
In fact this ideas would just make the problems we aready have more extreme