I agree with most of what you say, but let's be honest in that most "biz guy" types are far better salesmen than engineer types, particularly in niches like this. Having a network of influential family members, college buddies, and relatives of buddies is a powerful sales tool. Not saying it's fair, but it's reality.

Now, that doesn't mean they'd make a good CEO, just a better sales person, which is also a critical skill for most startups (although I do like the "growth engineer" movement, which puts some of this power back into the hands of engineers, in marketing if not in sales).