ctrenks, you have "absolute power" over your website. You can put whatever you want on it, and you can give it away to other people on whatever terms you wish. People can make suggestions about it, and you can do according to your best judgment, with those suggestions.
The ODP is really no different in that respect. The founders/sponsors/administrators have that same power. Just because it has a mission that lots of people are interested in, doesn't change that fact. Just because it produces a product that many people are interested in using, doesn't change that fact. Just because it invites people to volunteer to help, doesn't change that fact. Just because it has a well-earned reputation for providing good results to surfers, doesn't change that fact. And even just because it isn't perfect either in excluding all sites with nothing to contribute to its mission, or in including all sites that could contribute, doesn't change that fact.
Editors don't have the kind of responsibility (to you) that you are expecting. Instead, that responsibility is to the community. And we editors don't have the power that you think. If I fail to add a good site, many other editors can repair that breach. If I add a site that really doesn't contain anything like the community definition of "unique content" -- many other editors can repair THAT damage also. And editors do clean up after each other. (This fact should certainly be obvious to anyone, in THIS context!)
If editors seriously disagree about the value of a particular site, they'll discuss it in the editor forums: where people who have built a reputation for reviewing hundreds of thousands of sites (each!) will have their proper influence (i.e. considerable) and webmasters will have their proper influence (i.e. whatever is on the site itself.)
If there is no serious disagreement among editors about a site (which is the normal case), then there's nothing to discuss: whoever takes care of the site makes the judgment call.
And, in a category like this, with such obvious potential for abuse -- hey, whom am I kidding: with such MASSIVE abuse by affiliate-doorway and advertising-farm webmasters! -- your imaginary "competitor" is not going to be reviewing any substantial number of sites: instead, we're going to be relying on people who have established a reputation for honest dealing through thousands of edits across many parts of the directory. Because we don't want the directory to be like you imagine it is.