I agree. The gap between Moderate and Strict is far too wide. Adding a policy in between would help. Something like full refund up until 2 weeks in advance, then a 50% (or even 75%) refund until 1 week in advance.
I'd also like to have the ability to apply different policies to specific dates. For instance, we have a lot of high-attendance festivals and events in Austin (SXSW, ACL Fest, Formula-1). We charge premium rates during such events, and they often book up 6-12 months in advance. At the same time, most attendees search for bookings that far in advance; few wait untiul te last minute. So, when I have a last-minute cancellation (say, 6 days ahead, under the Moderate policy), it can be next to impossible to refill the dates at the premium rates. Costs me a lot of money!