We have come across this process breakdown and I do see it as a last resort. At that point I found it very helpful - otherwise we would have got stuck in power play showing up in back-and-forth discussions - seeking integration but not getting there because the willingness to seek integration was not there. The Facilitators judgement call cut through these dynamics and led to a decision.
Since any Circle Member could call for an election I don't see a problem in "too much power" for the Facilitator. Once I recognized the misuse of such authority I would call for an election and elect a different facilitator. So the risk involved is far less in my opinion than the benefit of not ending up in endless discussions.