For me, this goes to the issue of analysis.But what about the analogy of clouds? I'm not saying its a "logic fail" to not like fiat or rule zero at all in your campaign; I'm saying its a logic fail to make no distinction between mild and judicious use of it, and excessive power-mongering. I've found that there is a huge difference.
I personaly don't find the contrast between "mild and judicious use" and "excessive power-mongering" helpful. For me, the useful distinctions are between different domains of gameplay or - which for me comes to the same thing - different ways in which content is contributed to the shared fiction.
Backstory, scene-framing, outcomes of action resolution: these are the categories that I think in (not invented by me - I'm under the influence of Ron Edwards here), and I think the GM has a different relationship to each of them (and likewise the other players).