Does being a better leader equal better soldiers?

Bad leaders create bad Soldiers, who in turn eventually become bad leaders, who create more generations of bad Soldiers, and the cycle perpetuates ad infinitum...

No, but it you set a proper example, someone will notice and take note. You're not going to be able to save em all, but if you can get one down the right path, you've done your job. You should be the example they use and aspire to be.

Absolutely. Good leaders develop their subordinates and they become better soldiers.

I never used the terms "toxic" or "bad" with leadership. A toxic or bad Command environment was/is indicative of a lack of leadership. What it is, if I can revert back to my Senior NCO days, is piss poor management. I served under both fine leaders and piss poor managers. The difference between the two is readily apparent.