There's a third option that's missing from that dichotomy: people who are OK individual contributors but who are actually really good at managing people. These

There's a third option that's missing from that dichotomy: people who are OK individual contributors but who are actually really good at managing people. These are the best managers, because they have the disposition/skills to be a good manager, but also aren't going to make dumb engineering decisions. IC's who become reluctant managers are generally terrible managers because it's not what they're good at and not what they enjoy.