Should rules be primarily prescriptive or descriptive?
I don't think all "rules" are created equal. There's the rules, then there's rules, and then there's rulings.
The Rules establish the "language" of the game and basic procedures. The game would slow to a crawl and be unplayable if I had to explain every time what it means when I say roll to hit, make a save, roll initiative, roll for damage, etc. I remember going to cons in the 90's, sitting down to an AD&D game, the first thing the DM would have to clarify is whether we're using d6 or d10 for initiative. If it's just this one thing, it's not that big a deal. But if you start tinkering with the whole list of core rules and procedures, there would just be way too much to front-load. These rules should be mostly left alone and played as written.
Then there's rules, as in rules of thumb. Like magic-user armor restrictions is a pretty good rule of thumb to balance out and differentiate the various classes. But if you have other ideas, have at it. It's not like you can't write a suit of armor on the magic-user's character sheet. You can still calculate Armor Class the same way. It doesn't lead you to having to divide by zero causing the paper bursting into flames. It fits just fine withing the framework of the rules. You can question whether or not this would be a good idea, but you can still do it without having to re-explain the entire game.
And then there's rulings. The 1E DMG I believe is mostly made up of rulings. That's why most of it just seems like oddly specific rules. It's like, here's something that came up, and here's a solution that worked well. The published rulings in an RPG should be something like codification of judgement. I think there are some really great calls in that book, and so I tend to use everything as written. But at the end of the day, the rules demand the DM take up the role of adjudicator. And so the DM must rule according to what he or she finds most reasonable. In fact, I would argue the DM who follows the rulings as written without applying sense is abdicating the role as adjudicator and is thus ironically going against the rules as written.
The rules should be prescriptive. Rulings should be descriptive.
Rules of thumb are a little trickier. They could be thought of as soft-prescriptive--that is, they should work well if followed precisely but also (ideally) be flexible and not break down if the individual GM starts tinkering with them. Or they could be thought of as descriptive in the sense that they provide a good example for the GM to aspire to in his or her own variant.
This also relates to how to interpret the written rules. There's a famous line from Gary Gygax's afterward in the 1E DMG that I use as a Rorschach test.
BY ORDERING THINGS AS THEY SHOULD BE, THE GAME AS A WHOLE FIRST, YOUR CAMPAIGN NEXT, AND YOUR PARTICIPANTS THEREAFTER, YOU WILL BE PLAYING ADVANCED DUNGEONS & DRAGONS AS IT WAS MEANT TO BE.
Most gamers I've encountered view this as prescriptive finger-wagging. "You better do things this way, otherwise you're not playing real AD&D." And that's usually met with all too predictable sobbing and wailing, "But muh badwrong fun!!"
But I see it like this. Yeah. You can do whatever you want. No shit, Sherlock. Even if the RPG comes with engraved tablets stating plainly that Thou Must and Thou Shalt Not, it's not like the game police are going to kick in your door if you stray from the rules as written. The real issue is not whether or not it's "muh game, muh rulez." It's more like, "Okay, tough guy, you can do whatever you want. So what are you going to do?"
Like suppose for example you've got an idea for a home brew magic item but you're not quite sure how to stat it in AD&D (or whatever RPG you're playing). I would say, well first, I want to make sure the item isn't so powerful that it dominates the whole game. But I also don't want it to be so weak that I'm left wondering why bother. That still leaves a broad range of possibilities. So next I'm asking, of those possibilities, what fits the item thematically and how does it figure in with the campaign as a whole. And then if I still have multiple possibilities, I ask which would be most fun for the players. Or even leave the choice up to the players--like maybe the item has multiple settings, or maybe there are multiple versions of the item that players can pursue. That sort of thing.
I think this is all fairly common sense. But it happens to track the Gygaxian Holy Trinity of considering first the overall game, second the specific campaign, and third the players. I would argue that the quote is not prescriptive finger-wagging at all. It's descriptive of what sound DMing looks like.