Earlier quoted context omitted.
What is your alternative? Tying "the existence of internal software components to people's livelihoods" across the expanse of the entire codebase is the only remotely effective approach I've seen to scaling the SDLC at scale.
Think of all the open source libs. Generally speaking, anyone can contribute to any part of the project. That's not to say that some people are better than others at certain parts of the codebase, but you don't want people fighting to keep old cruft in because it's on their job title (figuratively speaking). You can organize around customers, use-cases, platforms, concerns or other things. Some might naturally map 1-…
Is it wasteful to have whole teams at GOOG, FB et al owning and improving the state of the art of infrastructure? It depends. At a certain point, there are enough internal customers for teams to reach contribution margin positive on engineering initiatives that have no direct but only second order effects on customer experience.