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Looks like we have changed the behavior on sending subscriptions. It is assumed that moderators will subscribe to the categories if they want to get emails -- and the setting only sends emails for moderators and administrators if message needs review.
I changed the feature as I thought that forcing moderators to receive emails from everything is something that nobody (as moderators) want to have. If I'm moderating something, I always want to be control which emails I receive.
Descriptions needs to be changed if we keep the new behavior:
Set to Yes if you want e-mail notifications on new posts sent to the category moderator(s). Note: Although every Administrator has automatically all Moderator privileges, assign them explicitly as moderators on the category to receive e-mails too.
Set to Yes if you want e-mail notifications on each new post sent to the enabled system administrator(s).
I agree with adding this option. It's nice to have because all sites are different. I have several sites that are large traffic and setting emails to moderators for everything will cause a lot of pain. However, I have several small sites too, to where moderators need the "email about everything" option so they can be notified when activity takes place ( and it also encourages them to check the forums and be more involved...the real reason I like it :)
Fix #916: Moderators Not Receiving New Topic/New Post Emails
* Keep the old behavior from K!1.7 by default (mailmod, mailadmin)
* Rename old 'No' to 'Unapproved Posts'
* Add new option to disable emails ('No')
* Change descriptions