I like the way Joel Spolsky describes managers taking this even further at Microsoft back in the day. They wanted to make sure the engineers knew that they were the ones designing the software, to the point where they would refuse to even step in and resolve a conflict between two engineers about the design. Even when those two engineers came up and asked for help resolving said conflict. Now you've got three people…
TLDR: A project needs a dictator in order for the endresult to be well designed and directed (else, it can still be profitable according to speaker, but not excellent). Funny that parent mentioned it, (Ballmer-era) Microsoft gets an unhonorable mention towards the end, with their "meh" XBox concept.