I would modify that to read (since this article even stated that the engineers there found this to be obvious):
>The Google CEO's have the point of view of an engineer.
And, more generally:
>The Google CEO's have the point of view of the people doing the actual work.
The lesson to take away from this is that one shouldn't try to manage what one can't do themself. The disconnect between the manager and the problem domain becomes too great and they end up making ridiculous decisions since they are acting on the wrong information.
First, engineers very often build crappy products when left to their own devices. The ones that they do the best at are ones where they are also the users and are more or less representative of the target audience. Google's a great example, and so is Firefox. So I think Google execs' perspective as a user was much more important. Consider as contrast Google Plus, which definitely was not built because was an avid but dissatisfied Facebook and Twitter user.
I think your second point is almost right. You should never try to control things you don't understand. It's ok to manage things you don't understand, because good management in that case is not directing the people who understand, but supporting them in achieving common goals.
As a non-tech example, few hospital administrators can perform brain surgery. But that's fine as long as they ask the brain surgeons what they need rather than telling them how to work.
>The Google CEO's have the point of view of an engineer.
And, more generally:
>The Google CEO's have the point of view of the people doing the actual work.
The lesson to take away from this is that one shouldn't try to manage what one can't do themself. The disconnect between the manager and the problem domain becomes too great and they end up making ridiculous decisions since they are acting on the wrong information.