Is it possible to use "too little power" as a leader?

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Use of Leadership Power Not Evil

Formal leaders have formal power within organizations by virtue of their official positions. One of the responsibilities of formal leadership involves using that power to make the right things happen, and followers expect their formal leaders to use that power to make decisions, and make things happen.

Followers don't want to be victims of unbridled use of this kind of power, but neither do they want to see their formal leaders abdicate this responsibility by refusing to make tough decisions. There are indeed times when it is necessary for leaders to damn the torpedos, and make those tough decisions even when there will be negative fallout.

So, the answer is yes, the application of too little power can be problematic if it results in the perception that the leader is indecisive, lacks courage, and appears not to be able to act in the best interests of the organization and its members.