Yes. And yeah, people think you are the bad guy sometimes... But, like IRL, you pull people to the side, and talk it out. Let them know you aren't targeting them. Most people come away with a better understanding of why you modded them if you level with them. And they are less likely to be repeat offenders in the future. Heck, in some rare cases, I've had those people come back and start contributing in a positive way to our community. I wouldn't say I rehabilitated anyone, but some people respond better when you take a more personal approach to moderation with them. Respectfully, of course.
A lot of the time it is all just a big misunderstanding. Your job is to work along side the community you are a part of. Not stand above them like a god.