As a manager in technology I'm starting to really detest stories like this, because they are often bandied around by IC's with a very narrow view or opinion of why it's bad to do new change X or Y "because here is a story", which on the surface may be similar to what happened here but is in fact a good idea. In reality things are always so much more nuanced, or require much more context to judge, than what people naively think.
In this particular case, I can think of a few reasons why the original scenario that this team was in would still be considered "bad". For example, maybe Tim received tasks to do and he didn't do them, now the company is behind on things. Maybe the other people are not as good as their job as they should be, but because of Tim's interference that's being hidden. Maybe the expectation is that the other people are as good as Tim, so why are they not helping each other out as much as Tim is? Should Tim get a promotion, or are the other people performing badly compared to their position and salary? Maybe the tasks that Tim was supposed to do are more important than the ones he's helping others with. Maybe the company didn't budget this much investment (2 people) for a specific thing that needs doing, and as there's just so much engineering time going around, what other tasks are now receiving less time than budgetted?
There's so many ways where this story may fall apart in a real context. Obviously, something has to change (expectations, budgetting, salaries, job levels, etc...) to align reality with the direction that the company wants to go into, and that change is not necessarily (limited to) "keep Tim around and have him help everyone out and everyone will be OK and this is the optimal scenario and management bad".
The implication also being that "evaluating people on story points is bad", but that completely disregards the fact that doing this has surfaced an issue in the department that needs resolving (and before I get pitchforks thrown at me - that issue may very well be that Tim needs a change of job title and a promotion) - but obviously expectations and reality didn't align beforehand, and the story point metric surfaced it and allows for resolving it. In that sense, the story point thing yielded benefits that otherwise wouldn't have been had.