From all the posts till now, it seems no one considers it a possibility that the Flt Cdr could also grossly misuse this authority. In my time, I have come across quite a few (to be polite about it!) Flt Cdrs who were rather vindictive about someone or the other under them!
Remember: it is an authority that does not have the backing of responsibility. No one could sue the Flt Cdr at a later stage for "Malpractice" now, could one? After all, judging a person's sanity (or otherwise) could never be proved legally to be the trained and taught job of a Flt Cdr!
Bit of a Pandora's box there, methinks!!