I agree. I think of it like a car engine. You can push it up to a certain RPM and it will keep making more and more power. Above that RPM, the engine starts to produce less power and eventually blows a gasket.
I think the performance-based management worked for a while because there were some gains to be had by pushing people harder. However, they’ve gone past that and are now pushing people too hard and getting worse results. Every machine has its operating limits and an area where it operates most efficiently. A company is no different.