I think the next paragraph is the most important:
Things soon began to get a little crazy. Team members began to affect loud maniacal laughter whenever they discovered software defects. Some individuals even grew long mustaches which they would twirl with melodramatic flair as they savaged a programmer's code. And the things they did to software went beyond all bounds of rational use testing and were more akin to software torture. The crazier things got, the more effective the team became.
This makes it sound more like a cult rather than a group of rational people working together. Reminds me of this and similar posts. So instead of "A Parable of Group Effectiveness," it's more like, "A Parable of Smart People Getting Sucked Into a Feedback Loop Causing Them to Confuse Their Sense of Group Identity With the Terminal Values of Their Employer."
"...With the Terminal Values of Their Employer"
(blink)
Of what employer are you presuming quality code is a terminal value?
EDIT: Or, if I've misunderstood you... what employer terminal values are you presuming, here?
From The Black Team. (Hat tip to Adam "ata" Atlas and Mike Blume.)