This explains a lot better why they want to stay like that. As soon as you hire new developpers and want to keep full control, you code less and become more a project manager.
Many coders do not want to manage at all, they want to code and I understand...managing is not such a nice job, and being managed is less fun too.
This explaination is 10 times better than the team-larger-than-3-produce-bad-things which is obviously wrong (if team is not too big).
IMO this is a (quality of) life choice more than anything else.