Man, that example knocks it out of the park. I had my own retort to the basic concept behind the article, but that one tears it to shreds.
Anyway, the tendency of the article pushes negative reinforcement, not just anecdotally, but also as a continuous prevailing message, instead of alternating with degrees of praise even if only on occassion. There are at least three things wrong with that on a behavioral level: a. resentment as an inversion of stockholm syndrome b. learned helplessness, and c. simple fatigue.
In other words, people will hate your idea of leadership, conclude that you can never be pleased, and realize that they'll be worked to death on a treadmill of demands, if they don't jump ship sooner or later.