(I'm having trouble with this seeming to be a feel-good anecdote about a high-pressure working environment in which people are burning out and killing themselves.)
I suppose that, in part, it's exactly what you say it is.
If it's a feel-good story, I think that must be because I feel good to have had the opportunity to meet and work with Larry Tesler. He impressed me with his intelligence, his generosity, and his compassion. I feel that I'm better for having known him, and I suppose that comes through in my account.
You're right: Newton was a pressure cooker. Larry didn't put that pressure on us, though. We put it on ourselves. We got the idea that there was an outside chance of making something great, and we pursued that dream as hard as we could. Some of us--I include myself--were intemperate in that pursuit, and it cost us.
Now, the pursuit of greatness is a species of vanity, and vanity is a cruel and fickle master. But in Newton's case, at least, I think those of us who were seduced by that vanity have only ourselves to blame.
Your second point may be one reason why, whenever I think of Larry, I also think of Steve Jobs.
Steve was infamous for riding roughshod over employees in pursuit of making something great.
Larry's example shows that such treatment is not necessary to get people's best work. If you can't get great work out of people without abuse, that's your own limitations showing; it's not a law of nature.
I suppose I also think of Steve because I met and worked for Larry and Steve in the same fairly short period of time, and because both projects were high-risk, low-percentage attempts to create something great. Also, perhaps, because Steve was opinionated about Larry and I argued with him about it.