...letting c level executives have free roam over their domain with little oversight or Founder involvement.I agree with you, I think. pg's point was that "Steve Jobs Mode" is the opposite of founders letting their C-level execs roam free. I don't agree.
I think the improved model is "free roaming managers with lots of transparency and accountability."
"Free roaming" and "no accountability" are a recipe for disaster.
But a CEO/exec/manager who reaches 2, 3, or more levels into their org and gives specific direction is a recipe for mismanagement. It violates the golden rule: don't create a role with two bosses.