That's literally treating people as means to an end, when it's not clear if the "end" even required sacrificing young people's lives. In the grand scheme of things, why not spend an extra year to build at a pace that doesn't burn people out? If you look at the careers of the people who subsequently left, by Sandy's account, they went on to to run their own great game studios, so it's not clear that a grind was necessary.
I have not reason to defend these people or their actions, but can we know their future success was not formed by their formative experiences at Id? I think we undervalue hardship and struggle as accelerants.