I've got plenty of experience with QMH NICU and honestly I think they do go to the almost damaging point of overly cautious. My daughter was in NICU for 4 months - other babies in the US who were MORE severe than my daughter were out of NICU and home within 2 weeks. There was no change in my daughter's condition between 2 weeks of age and 4 months of age - and the doctors told me she was there pretty much "just in case". When she was in NICU between 2 weeks old and 4 months old, there was nothing that they did there that we could not have done at home. Of course if she took a turn for the worse, we couldn't give her the emergency care that would have been necessary, but she never once needed that.
Also, my daughter's surgery to mend her cleft palate was also delayed more significantly than it should have been. It was finally repaired when she was 22 months old, although in other countries, kids who have similar conditions have their cleft repaired closer to 15 months (slightly delayed from the average 12 months old). Due to the long delay, we are now (at 26 months old) dealing with more significant speech delays than if the cleft had been repaired sooner. (That wasn't a NICU decision, it was a plastic surgery decision).
I'm not saying that they should not take necessary precautions, but over here they take far more precautions than is necessary in my opinion/experience - and there are frequently negative consequences which I feel outweigh the benefits of that gap between "regular-cautious" and "over-cautious".
Ultimately, I would prefer my doctors to be a bit more cautious than average - however the extremes that I've experienced in the system over here are crazy. That said, my situation is not a regular case... but I have seen a common theme occur over and over...