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.
And I think it's a polite way of reminding everyone that being an asshole is not required to do great, world-changing work.