...this move would de-emphasize the importance the skill of negotiation, which would be a detriment to the company.And it would benefit the employees of the company, who are disadvantaged because they only negotiate salary every now and then vs the hiring manager who does it all of the time, and who also has insider information on what the company is willing to pay and what everyone else in the same position is earning.
For an employee, knowing that your company, and probably your manager, reduced your income simply because they could is not very good for morale and loyalty to the company.
...some arbitrarily made rubric...years worked, which is a terrible standard
Totally agree with you there. Structured pay tables have to be based on more meaningful metrics than seniority and job title. I got glass-ceiling by that for a long time because I didn't want to switch from development to management, and my company (CTO and his toadies) didn't want to let me join the Architects group.
...engineers and business development people devalue each others work...Each side can find a justification on why they are being under-compensated while the other over-compensated.
That's true, but the business development people tend to be more highly compensated, work fewer hours and more regular schedules, and have much more political power within the organization. It'd be better if there were objective metrics for measuring everyone's value that both sides could understand, so they don't devalue each other. Everyone doesn't have to get paid equally in order for everyone to get paid fairly, and if a startup can cultivate a culture where everyone feels they're being treated fairly, they're going to be a great place to work.
Interviews reward people who can handle stress and negotiate.
Also people who are good at "faking it until they make it" and other techniques that work well for interviewing but not so much for doing the job. I don't think taking the salary negotiation out of the interview would reduce the stress level much, or the interviewers ability to judge how the interviewee handles stress.
You're going to want a leader on the engineering team to negotiate with the strategy makers to find an equitable solution.
No, you want a leader on the engineering team and a leader with the strategy makers to collaborate on finding the best solution for the company's needs. There should be no negotiation involved at all. This is mathematical constraint-solving, not deal-making.