Teams are made of people. People skills make you more effective at dealing with people.
Obviously you can be a total prick and demand performance and maybe get some people onboard but nobody thrives in those environments and unless you want to deal with turnover and mediocrity you foster good working environments with your teammates
Plenty of people thrive in environments where high performance is demanded. This idea that you produce the best outputs by coddling your employees is pure cope.
Demanding high performance also doesn't necessarily mean forcing everyone to work 996 or yelling at people, but it can mean enforcing standards that everyone might not like or agree with.