This isn't a story about Bezos' genius. It's a story about bad corporate culture.
What's really happening is that people are afraid to think in the presence of the boss -- not just afraid to express their thoughts, but afraid to have them. All the boss has to do in those meetings is state the obvious, and all the courtiers fall around in awe.
And indeed it's explicit in this story as well: note the "jury of VPs" who wait for a clue from the boss to know whether they can laugh, and the people who come back from a meeting with the boss "licking their wounds" and going back to "a cave".
Obviously Bezos is very smart; it's possible he's "the smartest guy in the room" most times; and it's likely he doesn't have a lot of patience for fools. But what this shows is people are terrified of him, and he likes it, or at least he doesn't do much to correct it.