Earlier quoted context omitted.
A slightly radical theory: flat organizations are set up to foster that intentionally. Suppose your company has the idea that they want to identify and reward natural leaders and/or those who test limits and push through boundaries. One way to do it is to tell people your organization is flat, then watch for the people who don't buy that and instead see an opportunity to take charge. You create a situation with a lit…
I like your cynical take, but I'm not convinced it's actually the goal of management in all cases. I could see it drifting in that direction over time regardless. That said, some founders are actually idealists. I frequently discuss this topic with people who are aware of the invisible hierarchy problem and are interested in potential solutions. I think there are well-meaning attempts at this, even if they don't work…
I'm not in favour of flat systems for exactly this reason. I think they try to solve the problem of bad leadership structurally, by simply pretending to abolish leadership. IMO, it would better be addressed personally - e.g. by investing in leadership training or vetting candidates for leadership roles more thoroughly.