And I disagree with yours :).
Large organizations are necessary if you want things like airplanes and rockets and computers and MRI machines to exist. And if you feel you benefit from those things yourself, then large organizations that create and operate[0] them are beneficial to you, too.
> A lot of those products are then enshittified and badly managed because large organisation politics screws things up.
That's not caused by org size. It's how modern economics work because of ad-backed business models and few other things (a tangent for another time). Importantly, small orgs and especially startups are very much complicit in this - the venture capital business model in software settled around a symbiosis, where startups create toys (er, MVPs) and growth-hack the shit out of them, in hopes of winning an acquisition or IPO lottery (aka. "exit"), where a big org buys the whole thing for ${a lot}, and enshittifies it further in an attempt of extracting a positive multiple of ${a lot} from the market. Both sides know what they're doing, exits are planned from day 1, and at no point in this process "creating useful products" is ever a driving goal.
Note this symbiosis: it's a recurring theme.
> Large organisations are inefficient
In some ways. Small organizations are inefficient in others. More at the end.
> (everyone has stories of people in large organisations literally doing nothing all day).
Some (not all) cases of this are about maintaining slack in the system, which is necessary for efficiency. A system at 100% capacity is extremely fragile to breaking completely due to tiny, random workload spikes. Breakage is inefficient. Some degree of idle capacity improves overall efficiency.
> They mistreat their customers and their employees. Their executives tend to lose touch with reality, surround themselves with yes-folk and descend into authoritarian psychopathy.
That description fits small business owners much better IMO. In our times, at least in non-failed western countries, there's a limit to how abusive or careless a large organization can be with their customers or employees - their very size makes them easy to target legally. It might be hard to get through their well-funded legal defense, unless the case is slam dunk, but that's still much better than the armies of small businesses flying completely under the radar, flagrantly violating basic health and safety regulations, or flat out lying to customers in their face, because they're not worth the effort of investigating.
(Of course I'm using a biased sample; I don't know many CEOs of big orgs.)
Symbiosis angle: for abusive practices they can't get away with on their own, big organizations are more than happy to outsource to small orgs and then look the other way.
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Anyway, key point: *there is no categorical difference between "large organizations" and "small organizations". You need a certain amount of people and communication (and capital) to do high-complexity endeavors. The difference between a well-integrated big corporation, and a hundred of small businesses that kinda end up together delivering something big, is just that the latter is using the market as management layer.
And yes, you need big orgs to create things like commercial airplanes and MRIs, simply because the big org is a boundary layer, within which you have a non-market based incentive structure, and this lets you build things the free market just cannot reach on its own.
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[0] - Airports and hospitals are themselves large organizations.