If you insult your boss, do you expect him to flip out and lash back at you to prove his status within the company? Or does he just laugh it off and then ask his assistant to make a memo to fire you later in the day?
The second boss is someone who is to be avoided and also someone who will create shitty culture.
I expect the ideal boss to react to the situation, shut the thing down. I don't expect him to fire everyone involved.
Also, he literally runs business based on his emotions. He had power, but also does not seem to me like someone I could respect. He does not seem well adjusted. Also, he did not had power that would be related to his own personality or skills, if someone he cant fire would insult him, he is powerless.
His power against employee is purely from his ability to fire them. And yes, if you have that sort of power, a lot of things are easier, because people end up scared of very real damage you will cause them. Getting angry, if it achieves the same goal is more ethical and does not require disproportionally harming people.