Sorta. I would take a less-qualified but more personable engineer over their more capable peer any day of the week, for the aforementioned reasons: engineering isn't the only skill required – those who don't insist on managerial perfection don't actually need a lot of managing as a result. It's a positive feedback loop.
Also if engineers think we don't check references and backgrounds anymore – including reputation – those days are long past. It's too much of a liability to have the 'talented asshole' as part of a team anymore.
> Especially if you introduce boundaries and restraints.
Boundaries and restraints are a professional reality.
> So when/if management go down the route of treating Software Development like they treat any other department.
It's this exceptionalism that earns engineers the reputation of being jerks, and creates a negative feedback loop. Want to be free and clear to operate without too much bureaucracy? Play the cooperation game. This is as true with engineering as it is literally any other thing that requires more than one human.