Earlier quoted context omitted.
It is better to have a functional organisation where people float in and out of roles defined by the expectations of others and everyone is capable of judging basic business tradeoffs, yes. That, in my experience, makes people happier. They get to focus on important problems, help people they know, and develop their well-roundedness as human beings. I think you might be underestimating the amount of overhead that is…
This reminds me of a very interesting comment on the engineering and management practices at Intel [1]: "I often called Intel an 'ant hill', because the engineers would swarm a project just like ants do a meal." I've seen it happen at smaller scales, great engineers in flat hierarchies without direction might not be the best idea from a business perspective... [1] https://news.ycombinator.com/item?id=31571560
Only in a very hierarchical organisation are the lowest levels without direction -- because the higher levels maintain their position by keeping important information secret.
If the important information (market signals, experiment outcomes, financial data, etc.) is made available to everyone, and everyone receives a sliver of training in interpreting it, any group of engineers worth their salt can make responsible decisions in the right direction. (Often much better than a small set of executives would.)