I'm not a mod on this site, but I am currently a pro-tem mod on another much smaller site, and I certainly agree with:
On a small site ... where we have a low number of voting community members, we are very lenient but need to step in earlier than a larger site.
sometimes a problem just needs dealing with, and mods are there to do that!
However, there's a related bit of logic that I also think is important: If a site doesn't have sufficient non-mod users to close in some cases when appropriate, it probably doesn't have sufficient non-mod users to re-open in some cases when appropriate.
So I would suggest to mods: If you mod-hammer a question, be responsive to attempts to improve the question and also queries as to whether the close was appropriate. If you're not going to have the time to do that, that's when it might indeed be better to leave things to the community.