It depends on how you view it, over the long term you are simply left with people who can cope, whether it is good way to run a team/organization is a different

It depends on how you view it, over the long term you are simply left with people who can cope, whether it is good way to run a team/organization is a different question, but it certainly possible to get gains over longer periods of time For example in professional team sports you face high pressure constantly, while individuals fail all the time unable to cope with demanding physical and mental nature of the job, teams however can and do usually improve because the retain the ones who can thrive and perform in such environments and "firing" the ones who don't.