Uh huh I don't like this at all
So with this system the only way for a good mod to be visible for a regular user is for it to be accepted first, then enabled in an online server, then for people -reviewers- to join that server, pick that mod, test it, and then rate it highly. Only then is it going to be visible on mods page. Actually even then it is doubtful, as it may just not get approved.
I don't see this happening at a large scale and I see this as quite restricting. Players really don't have that much of a problem when they see a bad mod. In fact seeing those shitmods makes players admire when they see a good mod.
I just see here too many hurdles which may demotivate the modders.
Only thing I see wrong with the current system is star rating being too ambiguous in terms of what the thought was when user rated the mod 1 star. If you could add a lil comment within the game along with a star, that'd give the modder an idea of what the general complaint is. Not sure if you meant this when you said implementing full works.
I'd change "Staff Picked" into "Approved" so that it sets a good example for a kind of quality that is welcomed and maybe expected. If you're really disgusted
by those low quality mods, I'd just add "Show WIP mods" button in mod browsing page and keep WIP's hidden otherwise. Or I'd reserve the most visible part of the page for approved mods. In either case, if a user wants to get his hands dirty he either scrolls down or clicks "Show WIP mods".
For the mods that are really fun but will not ever be at a "LFS standard" level simply because of what they are, if they are rated well, I'd give them trophies for each milestone, like in lfsworld. E.g. 100x5 stars = liked mod, 200x5 stars, loved mod or top mod or stuff like that. Ofc 4* should also count as a good vote, but some algorithm is needed. These could be used when sorting as well. They won't get the approved sign but they are still fun, and fun is why we play so they should be easy to access for the users imo.