I'm not sure if this is about a certain god or any god who wants or demands fear, or in other words some times threatens. But in case if its a general opinion that any god demanding fear from his followers out of a personal need, i agree that this doesn't speak highly of that particular god. However, i don't think that mentioning the fear factor necessarily mean that a god is in need of that.
The fact is that for some people (and thats probably a lot of people), the only or usual deterrent that stops them from harming others and doing bad things is the consequences. The idea of a certain authority figure which is good and kind etc.., but also strong and punishes when there is a need for such punishment, is not bad at all. A god saying or reminding people of his power and the consequences of doing bad, and fearing that, is not wrong or bad or showing that this god has a need to be feared. It is merely a deterrent for certain types of people. One method of many methods to encourage people to do good and refrain from doing bad.
Sometimes i do good because i want to do that particular thing, i believe in it and its going to make me feel good. Some times i do it to please the god i worship. The same with bad things, some times i refrain because something regarding my principles and how i feel about that action, sometimes out of feeling ashamed that i wanted to do such a bad thing, and some times out of fearing the consequences. For example i believe that whatever i do to others is going to be done to me, that has refrained me many times from doing bad things when all my usual reasons didn't cut it at that time.
