There's a difference in tightening something down and cranking on it with all your might.
As Matt said, I think 1/2 turn after snugging them up qualifies as "it's ok to tighten them up." Beyond that is ridiculously overkill, and I think common sense would prevail a bit here. I've torn two Guardians all the way down until every part was laying on the table of my archery shop to gain an understanding of how they worked when they were first released, and never had a problem with either.
Rick, to answer your question... the caps are not entirely cosmetic, even though I think Bowtech did a great job in making these pieces attractive. The caps are the other end of the center pivot arm and is what holds the whole structure in place.
And they will pivot on their own axles; that's where the movement comes from -- NOT in having the bolts loose.