Yup, you got the point exactly, that is exactly what they should do.
Well, actually, that would placate him, and make him feel better, for a brief period of time. So that would actually have a brief, fleeting positive effect. I know you were being sarcastic, but it has an element of truth to it.
Of course the team would never do that under the circumstances, so the team is doing the next best thing, which is placating him and stroking his ego. That is why you see Jerry showering Gregory with praise, even in the face of Gregory's repeated ****ups. Examples of this are Jerry hugging on Gregory over the past few days.
Jerry is doing this for a reason. He may genuinely care about Gregory, but Jerry is also a very smart old man, surrounded by experts in human behavior. He has learned how to attempt to manage these types of people. If it doesn't bear enough fruit you will see us cut bait with Gregory soon.