Someone (aswanson?) posted a question I thought was really good, and was replying to with the following. But when I hit "Add Comment", it seemed the post was deleted in the meantime. I'm going to put my reply up anyway 'cause I spent 5 minutes writing it :)
The question was: how did the situation get this way, with creative and knowledgeable people being told what to do by often clueless managers and MBAs, who have no particular expertise? It seems irrational and it's not obvious why the world would work this way.
Jerry Weinberg, who was one of the first few computer programmers in the world and later became famous as a writer, was asked this once. He said that the first few generations of programmers (up to 1970 or so) were arrogant towards customers, businesspeople, and managers. Programmers were so scarce, and computing itself so unfamiliar and scary, that programmers expected and were given a kind of godlike deference, which they abused. After a while, customers got angry about the fact that they didn't have a say, were treated like idiots, and given stuff that didn't work very well. Eventually, Weinberg said, this led to a backlash whereby managerial control was imposed on programmers. The effects of this backlash persist today.
I don't claim that this is the only answer to the question, but it sounds like a piece of the puzzle, at least in the software business. The thing about the backlash is that it also failed, leading to the irrational situation the original questioner described.
Perhaps the current generation of entrepreneur hackers can be seen in this context, as programmers who have creative control, but also really care about building what customers want.