When I was with DVI, I was known for being absolutely unforgiving when it came to our technical support folks, and even more so with our development staff. May basic attitude was that I was trying to build the best product on the market, and if you weren't on-board with that, then you were getting in my way.
Some folks didn't like my 'take no prisoners' approach. Some would say I was rude. In fairness, I probably was, but I didn't have time to spend coddling a bunch of folks who needed hand-holding.
I'll freely admit it's likely that we lost some capable talent because of that. But we DID build the best product on the market.
Is Linus doing the best thing for attracting development talent? Probably not. But I think he IS doing what's best to make Linux a good product.