I guess if that's your experience of letting toxic people go, maybe everyone you worked with was toxic? The usual reacttion I see from teams when firing people who seem to make a project/product worse instead of better, tends to be a sigh of relief and a communal feeling of "Lets get back to business".
Firing people making bad choices, people tend to appreciate that. Firing people making good choices? Yeah, I'd understand that would freeze people and make them avoid making proactive choices, try to not do that obviously.
