Earlier quoted context omitted.
The grandparent comment wasn't about formal replacing informal, it was about bureaucracy replacing dictatorship. I don't think that's always a good thing. If the organization has some urgent goal, like winning a war or putting a man on the Moon, some dictatorship is needed to keep bureaucracy in check. But when there's no more urgent goal than well-being of the organization's members, that's when dictatorship fades a…
Is this really true? Does this work in every kind of war or Moon-race? Control is important, but so is individual initiative. The front line needs the latter the HQ needs the former. That's why "aligning goals" is the important thing, not just rules for power's sake. (That's authorianism of course.)
Basically control > individual initiative but control + individual initiative >>> absolute control (see Stalinism).