I would agree with you.
Without looking at the code, it appears that Moderators have the option checked YES by default. It makes sense in a way. If you moderate a forum, you should be notified of a reported post. The reason administrators and global moderators have the option to reject the emails is that they are responsible for many forums, so they would be getting a lot of emails. If you have a good moderation system setup, you might opt out and leave it to the individual moderators to deal with reported posts.
And now I've reasoned my way into disagreeing with you.
Perhaps moderators shouldn't have the option to not receive the notifications, because their job is to moderate. Perhaps the right "fix" is to change this wording "Moderator and Administrator Email Notifications" to "Global Moderator and Administrator Email Notifications" in the language file.
And now that I've gone down this path, I'm wondering why Moderators have the option to opt out of notifications to approve posts in their forums (although the logic behind that is seems to be that Globals and Admins can also approve the posts.) Of course, that's likely why the title of the above is Moderators and Administrators.