I've seen developers let go because they weren't very good at writing software. I've seen developers let go because they were painfully anti-social to the point that they were negatively impacting the rest of the organization. I have never ever seen a developer let go because their estimates were crappy.
The developer's ability to estimate accurately is not an significant factor in this scenario.
At the VP level, you're expected to understand what the Developers and Development Managers don't know about the SDLC. You're expected to bridge the gap in their lack of understanding by instituting processes and controls while mentoring them to become better at what they do so that the organization can succeed.
Frankly, I would expect such a company that employs those practices sees two things:
1) A very low retention rate among employees, with a lot of churn.
2) A risk-averse organization, heavily skewed to under-promise and just-enough over delivery.
I think I most disagree with this. Developers, in my experience, are quite often asked to leave the company after such estimates.
It's good to have a template - it helps not to forget things - but it is inherent in the work to have unknowns. Large unknowns. A good consultant would probably refuse to work on a project which would require him to use several major technologies which aren't familiar to him, but developer in a company may not have such a luxury as selecting a kind of a project.