I agree with this and I think it makes sense since mod actions are already public, they're sent to every single server out there and any server which enables them will reveal mod names, and allow searching by mod.
So I think it's only natural to enable it to make ease of use better since it allows searching by the mod doing it in the modlog and lets you confirm whether it is a specific mod doing things. That can be useful for reporting but it can also just be useful for people just looking to avoid conflict. If @[email protected] moderates several communities and is banning people for being gay and outing them in the modlog I might want to report them specifically for doing that, but someone else might just want to avoid touching any of the communities they are doing that in. Being able to know which person is doing the bans can help with that.
I strongly disagree with the idea that knowing who did it is only useful as a form of vigilante justice, it can be but the people looking to do this will do it anyway. It is better as a tool for users to help better report abusive behavior, or even just avoid conflicts with a specific moderator.
This is irrelevant to whether we make a change, but I'm still curious: do any other major Lemmy instances do this? I checked a handful of the big ones and they all have mod names hidden in the modlogs.
AFAIK, no. I think it's important to note that it would provide a vector for bad actors to harass moderators. I agree with the spirit of transparency, but people need to understand that there will likely be undesirable consequences from making this information public.