Not overstating anything, I think.
I beleive that we are all capable of losing perspective on ourselves and our behaviours. All of us. Sometimes, as another poster pointed out, it's a major life event that's brought out some unflattering qualities, sometimes it's fear...there is no "job security" these days, just as there is precious little loyalty...unrealistic expectations, mounting workloads, family issues, etc. Any of these, let alone combinations of them, can be the cause of an individual exhibiting behaviours that are not typical to them. The nosedive in performance is telling as well.
If an individual is valued by the organization they are with, it's worth the investment in time and resources to try and help that person recognize and modify their behaviours. If it's personal, you can't fix it. If it's work-related you may or may not be able to fix it. But you can help that indivdual recognize the destructive behaviours, the triggers for them, and help them learn how to manage/modify them.
I don't hink these things are either obvious or overstated...but I do think that it's important to discuss. For management, it's important that ongoing training and self-evaluation be part of our lives.