I assume they said this from a position of naïveté and then after joining academia realized it was incorrect. I'm not sure we should use that to suggest a defect in character.

I was heavily encouraged to give high grades for high reviews and to publish high-volume, quality be damned. I hope that my leaving had some effect on the decision makers at my particular institution. But my impression was that the issue was systemic, and I became very bitter. I thought it better to leave than to remain and further institutionalize that bitterness.