Read it again.
While I agree 'yelling' is not the most professional method of getting your point across, the CEO felt the need to impress a point on everyone that he wasn't going to stand for something. And that he was going to put resources (travel with VP of sales to talk to customers) into the person he was yelling at to make sure he does things differently.
This was not a casual emotional rant about something he said. This was a thought out attack on a way of thinking that was unacceptable to the CEO, followed up with a strategy to fix it.
I'll bet the author would agree that was one of the more pivotal moments of his professional life. A lot of CEO's might hear a comment like that, file it away, and then just not promote you, or put you first in line to be laid off. It takes effort and guts to stand up and pronounce what you, the leader of the company, believe in.
And that's something that's often missing today with CEO's.
A good leader will figure out a priori which techniques work with which people and apply them appropriately.
They are especially horrible when the person is in a real position of authority, like an adult over a child (parent, teacher), or an employer. It not only de-motivates over the long term, it causes a lot of damage to the relationship.
The military situation is a bit different, because of the pseudo-brainwashing ("break em down and build em up" approach -- downvote me if you like, but we all know that's an explicit goal to create team cohesion), not to mention huge legal obligations, and maybe because of the type of people who go into it to start with.
As much as I love etiquette, it's a nice little side deal, not the primary concern. What matters above all else is competence.
Personally I think yelling and screaming is awfully unprofessional. He still would have been humiliated and embarrassed if the guy had called BS on him in other ways, I think, which is probably what made the lesson stick. He got cut down to size, and he knew he was wrong.
I think screaming can backfire, too. I had a guy yelling and pounding his fists in a meeting the other week, and it reduced my opinion of him further. (He wasn't angry with me nor the 10 or so other people present, who were looking at him like 'what a jerk').
If I want to spend time with someone who has temper tantrums, I'd much prefer the company of my daughter, who I don't see enough as it is.
I have no problem with having heated discussions on occasion. I think it can be a great way to get people saying what they really mean. Mutual alcohol consumption surely is a gentler method though...