The current election is adding 3 more moderators to skeptics.SE, but not replacing the existing moderators.
When do we get a chance to replace the existing moderators with newly elected moderators?
The decision to make mods have permanent terms appears to be based on this Meta StackOverflow question, so that would be a good place to go to understand the arguments and/or register displeasure.
To make a long story short, moderator positions have an indefinite term length. The reasons for this are that there are basically little disadvantages and a lot of advantages:
moderators are closely monitored and helped by the community team which guarantees a fair behaviour
moderators that go rogue will be removed by the community team and the other fellow mods
moderators that go inactive are also monitored and new positions opened accordingly, ad hoc
basically most actions that mods can do, can be undone by the community (everything except deletions and suspensions, if I remember correctly)
mods typically have to step up and do unpopular things. Not having to worry about being being re-elected is very helpful.
There have been long discussions about this topic on meta.stackoverflow, I suggest, as Oddthinking as well, to take a look there.