This is probably all true, and indicates the need for a change.
However, you shouldn't take being a hands-off manager as being the same as a "bad" manager (not that you are, I just want to clarify). On a high-functioning team, management should be able to be hands off. They should trust at their core that things are being taken care of below them. Employees are being appropriately responsible and are policing one another as needed, hopefully mostly by leading by example and setting high standards internally. That's what any manager should want. The fact that Tito wasn't able to become a drill-sergent when the team fell out of control is less a reflection on his abilties as a manager and more a reflection of the needs of this particular group. They clearly need more hand holding, more rules, etc., It's the signs of a poorly functioning team, and it's sad IMO. Too much trust did Tito in. That sucks.