Like mrjarbenne, we're a community within a school context. There are plenty of teachers who ought to be autonomous with their own BuddyPress group/class. So far we have only 1 site administrator, moi - planning for a backup but yet to find.
It'd be awesome for all of our teachers who are BP group admins and mods (I can happily promote to editor role but no higher), if they can distribute (at least) existing awards. I don't see why we would allow teachers to edit anyone's user profile.
I see the role of distributing awards as a much lower role than site admin. I fear if this task is left to site admins then my BP group admins (and moderators) are powerless to recognise their group member contributions. Additionally, the more teachers (editor role) who are empowered to run their own group autonomously and reward students for their effort, the greater the community will be.
Maybe it's more of a BuddyPress only feature for Achievements but I think other large WordPress sites with multiple staff would also benefit from allowing those with editor role the capability to give awards (not edit profiles).
Some food for thought. Please consider.
Thanks for your time again,