"leave operations to us techies and focus on management"
Yeah, that'll indeed bruise an ego, especially one who doesn't know he doesn't know but thinks he does. Ergo, this was obviously the nicest decision they could take.
That said, it's nice when you get a manager who knows the nuts and bolts. There's less waffling about with business-speak in meetings and when you explain why something can't be done that way, there is agreement without much discussion (that's supposing that you know what you're talking about). Plus, if you're doing things right, you get his entire support when things still go pear-shaped.