Having worked office jobs in the UK (where Lionhead is based) this sort of thing isn't that unusual, I've never had someone adjust my chair while sitting in it (and I'm a little incredulous that he wasn't asked first) - but I have had to keep the chair set to a particular height, have to keep my feet placed on some stupid tilting thing, had the distance between my head and the screen measured and have to take a mandatory 15 minute break from the screen twice a day. I've also seen people having to check the lighting levels and humidity every couple of months.
Most of it is motivated by health and safety rather than efficiency.
As for Molyneux, he is a visionary in the field and he's a great speaker - but he doesn't have focus or follow-through. He's a great ideas man, but he's not who you want directing your project - he seems to focus on little quirks at the expense of the overall project, and he seems to be constantly changing direction throughout development rather than refining the game.