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gerg comments on Rationality Quotes: December 2010 - Less Wrong
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If your beliefs are defeated whenever they clash with reality, then you have attained a mastery of rationality that very few humans achieve. Torvalds' quote looks to me like an "is" statement rather than an "ought" statement, so I can't agree with your interpretation.
Interesting nuance. You have taken "loses" to mean "defeated", presumably leading to "and therefore updated"; I agree that this is by no means an automatic process. But I took "loses" to mean "is less accurate" (which of course makes my interpretation more tautological).