Yes they do! But so does artwork, integration, innovation, documentation, marketing, blah blah blah.
The primary goals, as I see them, are to create a great quality product and to increase usage of Free Software. And the kernel is just one part of that whole experience.
While each individual kernel developer has a preferred distro, the project as a whole should be distro-agnostic. I hope Greg KH made it clear that he was speaking as "Greg KH", and not as "Linux Kernel Representative".