Dorfman is right in a way. If permissions are not set correctly the mods can do a hell of a lot of damage. I'm going to let ya'll know how we do it at CV and maybe David can take that in to consideration.
1> Mods can NOT ban. Instead the banned member is moved to a banned user group. A special hidden forum is set aside for the banned member and the admins only to get in and talk things over. If the issue can't be resolved the final solution is applied. And once the member is sent to the banned user group, they can't get back in to the mian forum areas.
The banned user group is now an out of the box feature in the latest version of VB. Activate the infraction system and you have a pretty safe foolproof method of not only handling unruly members but keeping a trigger happy mod in check. They can't show you the door anymore, just another part of the forum.
2> Mods can NOT delete threads. They can do a soft delete which makes the thread invisible to members. Just mods and admins. The admin(s) will look over the thread and make the final decision. There is also another option for the mods. The thread can be moved to a hidden holding area where only mods and admins can gain access. This is the option that gets used most.
3> Mods can NOT mass do anything. That's my job.
We at CV and AA have never given as much power to a mod as you guys have. That just opens the door for a hacked mod account or a rouge mod to do a lot of damage. With limited or specially configured controls, you can minimize any damage, keep your mods in check, and make restoring things a breeze. VB 3.7 has so many mod controls you could fart in London and I'd know about it over here in North Carolina. I run 3.7 at AA and Buzz has 3.6.8 at CV.