1> Yes there is plenty of room to innovate on implementation, but they still want input to the scope of what they are implementing.
2> Nobody is saying they should be product managers, I am just suggesting they want more direct input to the shape of the product itself (not suggesting ALL engineers either)
3> Agreed, and PMs should continue to be good at this, its a core part of their role, understanding the ecosystem
2. Not every engineer yearns to be a Product Manager. Sure, many want to make product decisions but don't want to do the other necessary work that comes with the role (like market research, metrics and analytics, managing the schedule and budget, writing PRDs, communicating with customers and partners, dealing with Legal, making sure the user manual is accurate, coordinating releases with ops and tech support, etc.) I think some techies think being a PM means merely sitting in your cube dreaming up a feature and saying "This Shall Be".
3. Good PMs most definitely need to stay on top of technology as it evolves. They need to know their platforms' capabilities and when new things become possible.