Fair point. I guess maybe it diverges at the point where need diverges?

All companies need managers of some sort, and at the size we're talking about all companies will need a hierarchy of managers. Not all companies need a "Distinguished Engineer".

I think this is still an aspect that can be done better. If the top level of management (before C-suite, not in reporting chain) is some sort of mentor status, I'm not a fan of the term but an "Agile coach", or some sort of expert like that, maybe that's a better equal to the Principle Engineer – still fairly optional, very high level, etc.