"Whether this leads to toxic culture is a different question and up for a debate"
And here I was thinking this whole thread was about that question ...
"My point is a company that offers top compensation can and should demand top performance. "
Anyway, sure they can. But no company can expect from me, to put the company over my self. A good company has those goals aligned. I get money - and they get performance. Win win. But I will not work to death for them, as then all my money would be worthless.
That is - no for-profit company can expect this from me. A non-profit on the other hand, that has truly utilitarian goals, that really benefit humanity - I might consider putting myself aside. But why should anyone sacrifice himself, so a company makes more money? That doesn't make sense to me. But of course it makes sense, that companies want their employes give everything to them.