Moderators have control over everything in the site, except for the admin:manage page, which is only accessible by Site Administrators.
Moderators are chosen because they are regular contributors in the community; whether it be on the site, the forums or both. They are chosen because they are respected amongst the community, and are respectful towards others in the community.
An essential role of a moderator is that people can contact a moderator for help. Sometimes people need direct help, and don't know where to go or who to ask. In such cases, they can see the moderator list, because the title tells the community that "this is a person who can probably help me".
If you are not a moderator, this doesn't mean that you aren't respected in the community, that you are not respectful towards others, that you don't regularly contribute or that you aren't willing to help others. The title of "moderator" simply means that the person is all of these things.
Congratulations Socks! And may you continue to be an asset to the community with your extra powers!