When I'm in the employee seat, I try to avoid managers that use blanket statements of people. The 'best' workers, where everyone -- including their manager -- goes when they need the hard questions answered, will usually quietly exit. They prefer not to cause a big scene, knowing their value. Value usually has a big catalyst in this, often appearing sudden and unexpected, exit.
Some of these 'total failures' will go on to outdo even their own expectations. Some will do as you prophesize and 'fail' in their burnout, get fired and fade away. The strong ones will come back from it. People quit people, not jobs.