I once heard of a consulting project in the IT sector to get certain changes made on a bunch of computers. One million dollars and one year later, there was a gigantic multi-page flow chart with an overwhelmingly complex administrative process for how the changes would be made, that no one ever read, and the changes never got made.
These processes read a lot like that. You have a pretty diagram, and someone obviously put in a lot of work to write a process that sounds good. They can show it to their boss, and obviously they are doing the assigned task of writing up a formal process.
Except that no moderators have been reinstated, and there are giant, obvious, glaring flaws in the processes presented. (There are 43 answers already, most of them detailing specific flaws, so I don't feel the need to point out all the specific flaws in this answer.)
What I think is that you are attempting to combine incompatible goals.
You want to create a formal, transparent process for removal and reinstatement of a moderator that will be fair and equitable.
And you want to run Stack Exchange as a for-profit company, with people assigned to jobs using normal corporate reasons for giving positions. Including the people assigned to approve or disapprove reinstatement proceedings.
These goals are not compatible. You need to recognize that what you are attempting to do amounts to creation of a new system for justice, that will in fact be just and equitable and fair, and benefit the group as well as not harming the individuals to whom it is applied.
That's a tall order.
Ultimately, all the formal processes in the world won't help unless you recognize who you are attempting to restrain. If the company is restraining itself, and the company has the power to remove that restraint "in case of emergency," then the system is fundamentally, irreparably broken.
That's not to say that you can't have justice. You've actually done quite well for years. Like with a benevolent monarch who rules well, there is no outcry for more formalized procedures because people have justice. Conversely, when you have injustice, it doesn't matter what procedures you have in place to legitimize it and mislabel it as justice—people will still not be happy.
You can write up all the procedures you want, but at the end of the day it amounts to slapping a veneer of formality onto the arbitrary decision of a few CMs and thereby elevating that arbitrary decision to the righteous plateau of unquestionability.
I would prefer NO formal process at all, than to have a formal process that can be held up as an excuse for irresponsible or damaging actions.
If you see the need to take action, then take responsibility for the actions you take, and don't shuffle off that responsibility onto "the process."
That requires a high level of responsibility in a CM. But really, that's what's required anyway, to make the whole show work. Moderators and CMs show this level of responsibility all the time. Except in the case of Monica.
There already was a process for moderator removal. It was not followed. So let's not fix what wasn't broken. No process in the world can work if it is not followed, and attempting to "fix" it will just overcomplicate everything.