I think this can be true at the IC level and in situations where the organization's success depends on the product being good, but that's not always the case. Big companies with market control can go years, or perhaps even indefinitely make bad product decisions and still print money. Product development comes to revolve less around merit and more about appearances.
I've worked in big tech and had the sort of conversations with my managers where they say: "The work you're doing in X is great. I use it and it really needs work. But it's not a priority, or even 'impactful'. Your work on X is effectively equivalent to doing no work".
Sometimes it isn't even about getting a promotion, sometimes the implication is you should be worried about keeping your job. You can still do X which everyone knows is great and someone should do, but "on your spare time, as an extra" because Y is what your performance review will really revolve around.
The sad part is I can tell they mean it, and do agree someone needs to work on X, but it isn't their decision to make, because they have to show face and explain to their manager why an engineer earning XXX,XXX didn't meaningfully work on Y. Ultimately someone up the chain who you've never talked to is the person who decided X is unimportant; they don't want to kill it they just don't use it, or have a strategic reason to not care about it.
In the politics of upper management perhaps it was something an adversary used to vouch for, and now you have to prove the org can do without it. Or perhaps it's the ace in your pocket, and you wan't it to be lack-luster so when the big boss above you starts talking about retirement, you can show amazing wins in the area and be first in line for succession. Companies are not democracies. For better or for worse big companies are not democracies, they are feuds, so if the kingdom isn't in danger its future comes to depend a lot not on what's the best decision, but how a decision fits the game of thrones.