I'd argue this is not really true. Let's look at two notorious examples of "good" game dev companies, Valve and Blizzard (who I still consider good, even though

I'd argue this is not really true. Let's look at two notorious examples of "good" game dev companies, Valve and Blizzard (who I still consider good, even though I don't have any idea what's happening there since they got bought by Vivendi). Both take a lot of time to create games for example Episode 3, Starcraft 2, Diablo 3, TF2. So you can argue that both methods - being cruel to the employees and being very nurturing - deliver good games but take a lot of time.