In theory, that's true but I think you're making it sound a lot easier than it actually is. I don't know a single owner of a profitable business with employees that works less than a $250k/yr FAANG engineer. I sure as hell didn't any of the times I've run businesses. In general, you end up trading one set of issues for another - typical employee frustrations for typical business owner frustrations (closing new clients, dealing with employees, fighting competitors, keeping clients happy, managing all the overhead operations that come with business ownership, etc.)

It's possible to run a low-stress lifestyle business, but I would say it's not the norm and tends to be fragile unless we're talking something like lone wolf 1099 contractor self-employed without significant family obligations.