No, having the wysiwyg editor disabled for it to work is wrong.
I was looking into this same problem very recently and I discovered that author accounts don't have the same priveliges as the owner account - mainly in our case, the ability to use object/embed tags.
From the codex:
Note: Enabling this option for non-privileged users may result in their posting malicious code to your blog.
I'm looking for a role manager plugin right now so I can add this unfiltered_html option to author accounts (they are already on blog owner and editor accounts).