Yes that's the idea. Moderators would downvote content that's overpaid. It doesn't really matter if it was upvoted by many sockpuppets, if the content is shitty payout will go down.
We would have a system were post would go through a lot more scrutiny, which will increase the quality of content selection.
And the "evil whales" running the split accounts would astroturf the downvoted content, and say look at poor XXX hes getting downvoted by the big bad moderator. Dan is such a troll. Then dozens of fake voters would say "oh noes! we're being oppressed" And the moderators would back off.
If TPTB had the spine to downvote overvalued content, the system would work fine as is.
We would have a system were post would go through a lot more scrutiny, which will increase the quality of content selection.
The whales (most of them) might agree to this increased scrutiny in principle, but they won't put it into practice.
If the whales were willing to downvote shitty, overpaid content they would be doing so now.