Not a directive, just a situation where Vince thought he was punishing guys and unintentionally made magic.
You're entering the era of The Smackdown 6.
Heyman was given creative control to book Smackdown and a roster featuring Eddie, Angle, Benoit, Edge, Mysterio and Chavo Guerrero.
So Heyman had 6 guys who could all wrestle circles around anyone else in the company to book with, a headliner in Angle and 4 future headliners on their way up in Eddie/Benoit/Edge/Mysterio. It was a perfect storm for great booking and great wrestling.
It also helped that Heyman had a history with Guerrero/Benoit/Mysterio from when they were in ECW before they went to WCW. He knew them, he showcased them as pure wrestlers in ECW and most importantly he believed they were stars being held back