Yeah, but it's not always the right thing either. If a VC wants to give a buddy a CEO position and they sense the ability to push out a founder, they'll do it and still say it's for the good of the company. It's hard to tell what really happened without knowing the people involved.

That's the whole point of the charade, of course, but it makes reputational information valuable, especially when a founder is deciding whether or not they want to get in bed with a particular VC.