I just read this post and I agree. The kick mod/admin ability should be brought back. I had an issue on my wiki January 18, 2013 where two of my friends, both assigned to be chat moderators, got into a verbal fight with each other on chat and I didn't know what to do. I don't know how to take pictures on this thing, but I saved the chat.
You could always go to Special:UserRights and simply withdraw their ChatMod status. Dunno if that means you could then immediately kick them, or whether they'd lose their ChatMod status only after leaving chat. Either way, it should be a powerful enough threat to get squabbling ChatMods in line.