While at least some of the advice is solid ("give each employee just one job" is really just a special case of "make it clear who is responsible for the outcome, not just the process"), Thiel is either making a truly trivial argument -- your employees should be more than mere clock-punchers -- or is recommending a dangerous path for most companies. In my experience -- and, like many in tech, I have more experience with this than I or portfolio care to remember -- highly-insular, self-regarding companies are
usually total failures, for the usual Kool-Aid-related reasons.
Such companies, whether startups or established firms, inevitably end up focusing on aspects of their business (prestige, culture, a particular product mix, a particular technology or implementation, internal politics) that are irrelevant or actively-damaging to their profitability and external relations. In short, they end up believing their own press, and stop falsifying their assumptions. SWOT analyses become elaborate exercises in self-justification, failures to hit revenue or profit targets are handwaved away, and exogenous causes for short-term improvements are taken as proof that the company is run by brilliant minds who are no less than the weltgeist on horseback.
I exaggerate, but only slightly. Survivorship bias is a powerful fallacy, and far more organizations starve from narcissistic self-regard than feast out on their good looks. Rather than cultic insularity, successful companies should constantly have their antennae out, alert for unexpected opportunities and dangers, especially if they clash with the company's stated "culture" or mission. (This sounds trivial, but it's very difficult in practice -- CEOs tend to be very psychologically invested in their cultures; lower-level employees are frequently unwilling to bring concerns up the line; managers often have political incentives to hide, mitigate, or redirect bad news; and it can be hard to separate the usual employee grousing from objectively-genuine concerns.)
Cults that try to adapt reality to themselves are suicide pacts; cults that adapt themselves to reality become religions.