I think what I was looking for was more of something where:
(1) the post would be immediate, without moderator approval;
(2) the moderator would be notified of the post, and could take action if they chose.
The reason a post should appear immediately for the author is to convey that it has been received by the system. It also appears to be a standard Blog functionality. You don’t want the author sitting there wondering what happened to their post. Again, I sort of assume that it’s in the system somewhere, but it isn’t obvious how this is done.
Looking over the code, I would suggest that you consider modifying functions.php. If a post is to be accepted automatically, you will need to modify the wp_notify_moderator function. It is only a minor tweak, but it would be a modification to line 1160 where you change [is waiting for your approval] to [has been submitted], and an addition to the routine below line 1179 where the comment is now changed from a status of “0” to “1”.
If you want to make the routine more sophisticated (a good idea), you will have to build in a bit more query and tie it to permission settings from the admin module, e.g. “allow automatic posts” which should be a system setting.
Hope that helps. I think your product rocks, by the way. This is only a minor tweak, suggestion. ??