You assumed that people from camp (1) may have deficient people skills, and its fair to assume the extremes in this debate.
But what about the extreme of camp (2) isnt that just as bad, wouldnt a manager with deficient technical knowledge make ur life hell!!!
So if we exclude the extremes would u still pick camp (2) ???
Somebody with the technical skills and a deficiency of people, communication and organizational skills will do more damage to the group than a manager with the inverse skill set.
Great managers from camp (1) are probably more effective, but seem to be harder to come by because they need to possess two sets of skills, rather than one.