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Here is the referenced essay by Moskovitz: https://medium.com/life-learning/work-hard-live-well-ead679c...
Not that this is a company I would want to run, but there is more to this. Returns may be marginal, but so are the salary increases. You're not typically paying one engineer $120k to work a 40 hour work week and another, equally talented engineer, $240k. Moreover a 10x engineer doing 6x work for 80 hours is still more productive that 12 engineers working 40 hours/week.
Sure, but everyone burns out sooner or later.