I've heard various ideas such as limiting it only after mods have expended their points (this will require implementing a cooldown to prevent a user from getting points again too soon). I want to hear your feedback, and I'll roll together something for the next major update of the site. Leave your comments
roll back any such mods if the user posts... ideally give back the mod points instead of having them vanish into the ether
Not sure about that last one. With a way to reuse the same mod points, people will be less careful with how they use them. I think it should be like posting a comment that you know you can't edit after you post it. It makes you think more carefully about what you post.