Thanks to some suggestions on the Drupal website, I've improved the modifications to a) have Subscriptions honor the $node->moderate bit, and b) have Modr8 send out Subscriptions when a node is approved.
This still requires a patch to modr8 so that subscriptions gets called when the approval form is submitted, but uses a module for the rest. Also it pulls the real $node values from the database, rather than creating a skeleton from the form info.