I really wonder if they lost their first hire because of the hectic hours, even though they mentioned they finally had breathing room. Employees don't just forget how bad it was when meeting those tough deadlines. Perks after the fact may just not work if they don't see the future being any different.
I can't say you're wrong here. At the time, I lived for the long hours. It felt fulfilling and purposeful. It's hard to realize that everyone else around you might not feel the same way.
I think growth and the lack of defined future benefit also played a huge part here. Both are critical to job satisfaction.