I've used compressors comparable to the OPs with impact guns and air ratchets, even air hammers and die grinders while rebuilding several motors without any issue. Yes, they ran more than a high-end compressor, but they always did the job, and never any lack of power.

Yes, if you are running a business on it, a larger / higher powered compressor would be needed. For home wrenching, many people have successfully used smaller compressors just fine.