In fact, the entire movie's point is that simply HEARING others tell you those things doesn't do anything! The inner journey of the character getting to a place where he believes it himself -- or rather believes himself to be worthy of a greater path -- is THE crucial part.
So the example is exactly opposite the author's intent.
That said, I liked the article and agree with its point. In fact, I'd guess that effective leaders all have learned techniques and ability to remain calm/comfortable in having these blunt conversations that cut to the chase (but still value and hear people).
Ultimately I think it’s not really about going to far in one way or the other. I tend to be very blunt in my dealings with people to a fault. I wouldn’t say I’m mean, but like, in order for blunt truths to be effective I think they have to be somewhat rare, so I’m trying to adapt to be more strategic in my bluntness, but most of the time, let things go and maybe subtly steer rather than just calling things out all the time.