Yes it can. Direct criticism leads to more honesty, leads to a more productive work environment. Just grow some balls and learn to deal with direct criticism..
It's not that hard to give honest direct criticism without being abusive. Not knowing the difference indicates that you're a terrible leader. Belittling anyone who refuses to tolerate abuse as needing to "grow some balls" is utterly ridiculous. I wouldn't work for anyone with your attitudes.
this is a false dichotomy. the choice is not between "be polite and evasive" and "be honest and abusive". it's easy to be direct and honest without being abusive. see my example in another reply: