Might work for some projects. For really complex projects (which is what I typically work on), strong engineering helps and so a lead-by-example approach tends to work out and it helps to motivate the team.

Also, I can give my team members detailed feedback. I think they take my constructive criticisms more seriously if I also give them praise which is detailed and accurate. You need a hands-on technical person to really understand people's strengths and weaknesses in a concrete way. Being hands-on also makes you more approachable; people will tell you things that they wouldn't tell a non-technical manager.