Reddit decides if a community is NSFW — not the moderators.
Reddit is sending strongly-worded messages to moderators of certain subreddits that are marked as NSFW (Not Safe For Work), telling them to remove the tag or face being removed.
Theoretically, for a large sub like pics or military, if every mod held strong and was removed, would Reddit step in and find moderators or moderate themselves?
They have done so already for a few subs where a few of the mods were willing to budge. In others, all mods were removed and the subs were made restricted.