That sounds correct. Although I feel like there might have been expanded version of this story somewhere, but this is definitely where I remember it from.
For posterity, this is bit more canonical source for the piece:
https://ftp.gnu.org/old-gnu/Manuals/coreutils-4.5.4/html_nod...
> Why GNU su does not support the `wheel' group
> (This section is by Richard Stallman.)
> Sometimes a few of the users try to hold total power over all the rest. For example, in 1984, a few users at the MIT AI lab decided to seize power by changing the operator password on the Twenex system and keeping it secret from everyone else. (I was able to thwart this coup and give power back to the users by patching the kernel, but I wouldn't know how to do that in Unix.)
> However, occasionally the rulers do tell someone. Under the usual su mechanism, once someone learns the root password who sympathizes with the ordinary users, he or she can tell the rest. The "wheel group" feature would make this impossible, and thus cement the power of the rulers.
> I'm on the side of the masses, not that of the rulers. If you are used to supporting the bosses and sysadmins in whatever they do, you might find this idea strange at first.