Having led teams of 100+ people in the past, I can tell you with certainty it's the second. (which you're obviously in agreement with). There is also an immense sense of joy that comes from giving people the tools and then watching them figure things out and succeed on their own.
Indeed! Except if you fear you can be replaced if you enable your team, you will try to be necessary by not doing this. False thinking, but also common in corporate culture.