Currently appeals are rarely used. There's many reasons for this, including lack of accessibility for the appeal queue, the fact that you can only appeal once a day, and the fact that forums are easier to use. Also, appeals are not as effective as flags: they are passive rather than active. A flag requires someone to save a post, while an appeal will just go ignored if nobody is checking their page.
Sending them back to the queue would be a bit more effective as it would expose the posts again to the eyes of approvers.
I'm not sure about this recently added issue, so I'm bringing it here to the forums for debate. I'd be interested to hear more from approvers on this, as it will affect them more.
For myself at least, it doesn't feel like posts that are appealed have as much legitimacy for the moderation queue as posts that are newly uploaded or posts that were active at some point and then flagged. Maybe a more accessible secondary queue for appealed posts, increase the visible duration to something like a week, and have some way to view and approve these posts both from the new secondary queue and also the post index. The new secondary queue could also have the same kind of display as the primary queue, but also list all of the flags and appeals along with each post, at least those within a certain time frame perhaps.
Anyways, those are my thoughts, what do others think about the proposed issue?