I have two concerns about the removal and reinstatement policies. The first is that SE maintains complete control over the process and the second is the lack of transparency in the processes.
I think removal should require agreement between a CM (i.e., an SE employee) and a site moderator (i.e., an elected/pro-term appointed moderator from the community that is not an SE employee) that the moderator in question should be removed. For the reinstatement process, I think blocking reinstatement should require agreement between a CM and a site moderator that the moderator in question should not be reinstated. The moderators to be involved in these processes could either be the non-employee moderators at MSE, randomly chosen from moderators across the network with more than N years of moderating experience, solicited from moderators in the TL on a first-come basis or something like that or really anything that gives community members a seat at the table.
In the removal process, this means CM2 and CM3 would be replaced by moderators. SE essentially gets two shots to convince a moderator that the moderator in question needs to be removed. In the reinstatement process, CM2 would be replaced by a moderator. If CM1 and the moderator acting as CM2 both want to prevent reinstatement, the process is concluded and the request is denied. If the CM1 wants to prevent reinstatement, but the moderator acting as CM2 does not, the process goes directly to the execution phase to be decided by the current mods.
In regards to transparency, I believe both processes should be private and only involve the individuals directly relevant. That said, I think it would be helpful, and not much work, to keep moderators aware that the processes are being used and working.
In the reinstatement process immediately after CM 1 is assigned I think a message should be posted in TL stating that a reinstatement request has been received from USERNAME at SITENAME. I then think weekly updates should be posted in TL stating where in the reinstatement process the request is. Finally, when the process is concluded a post in TL should be given stating which action ended the process (i.e., previous reasons, recent behavior, irreconcilable differences, precondition rejected, non-response, reinstatement).
For the removal process, just knowing that it is being used would be helpful. In the Emergency Removal Process (ERP) I think step 3.5 should be to post in TL that a moderator has been temporarily removed under the ERP. In the Regular Investigation Process (RIP) step 2.5 should be to post in TL that a concern has been raised about a moderator and that the RIP has been initiated. In both cases, once the initial notification has been given, weekly updates stating where in the process the investigation is should be made in TL. Finally, when the process is concluded a post in TL should be given stating which action ended the process.
Finally, I think yearly (quarterly if this happens a lot) summaries should be posted about how often the processes were used and what the outcomes were. This should be done publicly on either MSE or on a blog post as well as in the TL.