As a mod, you have to retain a sense of dignity, and as someone who mods, and has admin'd on other busy forums for about 8 years now, I think I can say that with a bit of experience to back it up.
If I wanted to mix it up there in the way some mods do here, I'd hand the buttons back, and allow others who do want to retain that dignity.
Admin has to find what is right here, but IMO someone putting a mod hat on needs to be seen to show some balance in their posts, and they also need to be seen as mods who are actively posting on the boards and 'moderating' when the more lively characters get out of hand.
If the general rule here was you get a warning off a mod for bad behaviour to another poster you listen or get a weeks suspension - people might not like it, but it would cut down on a lot of the crap which get flung around and would also mean that the mods would gain respect for people who can be approached if they feel that things are getting out of hand with they way some like to gang up on others with little fear of reprisals, then the retaliation when their targets get backed into a corner - which does happen here.