"The problem is that many people who are hurt easily by cynical and sarcastic behavior(which is very different than being as asshole) typically take themselves very seriously and it's a sign that they are very self focused and place their own concerns way above those of the team."

Please give evidence supporting that claim. What I've seen is a lot of people are just non-confrontational by nature. They'll do a lot to avoid being in a fight. However, they may want to discuss things even with criticisms. It just becomes harmful to them after the conversational style crosses a certain line. Knowing this, groups like Toyota put a line down that allows the negative information to come in without the personal attacks or circumstances that shut many people down. Continuous innovations resulted that dwarfed the competition doing what you suggest. This is not an isolated incident as many innovative companies create similarly respectful environments where everyone tries to improve, either positively or negatively, the process or products without attacking each other.