A big part of the problem with many projects, or even companies, is that leadership is too soft and so you end up surrounded by incompetent individuals who either through delusion, or Dunning Kruger, have difficulty assessing their own ability. This results in incredibly inefficient and 'noisy' (as in signal:noise ratio) working environments. 'Hard' leadership gets rid of the slack and is willing to tell people when they're screwing up. This means you're going to be surrounded by the best, and anybody that's not carrying 100% of their weight is going to get removed. Of course you can have a problem there if the leadership is brutal and incompetent, but brutal and competent is a phenomenally desirable mix -- and that really sums up Linus, perhaps to extreme on both sides of the equation.
And in my opinion that really sums up many of the most successful leaders, both past and present. Though of course one huge difference between a Steve Jobs and a Torvalds is that Linus' work and behavior is, like Linux, completely open. Steve Jobs' was able to keep his persona restrained to within corporate avenues, with the rest of the world shown an extremely sculpted and fake image, the depths of contrast between the two only coming out after his death.