Ooo...this is interesting.
To put it simply, there needs to be some sort of balance in my opinion of course. If you're feared then you could chase away some good allies or even have a difficult time making 'friends' or building some form of relationship with your fellow followers. If they let their emotions ( main one being fear ) get the best of them, they might turn to someone else and they might consider you as unfair and such. There would be traitors, mistrust, etc.
Then on the other note, if you were loved then, even though it might be good, but some people will start to make assumptions, not seeing that you can tough and you will have an enemy always hidden or even lurking somewhere.
While it is a good thing to be feared, you shouldn't let your followers fear you. Enemies should fear you, to show that you mean business. And while it's best to be loved, it's sometimes good to show some tough love or know when to not let your emotions get the better of you, clouding your judgment.
So again, some sort of balance, if this isn't too confusing...
I'm actually with Hakumi on this one. There does have to be balance. Leaders need to be loved by their people for there to be agreements and such. But they also need to be feared so the people know where their places are, and see said leader as an authority.
I agree with just about all that was written above. I use to think being feared as a leader made me strong and wise. It didn't take me until just a few years ago that being loved as a leader is just as strong.
Yes, it is true that they may even rebel against you. But sometimes even being a nice [whatever you want to call loved] leader can sometimes have someone rebel against you either way. There will always be someone [regardless if you are loved or feared] who will rebel. The real question is if you will make the right choices or not weather you are loved or feared.