This isn't limited to MBA's. There's plenty of (non-cs) engineers out there that are in high ranking positions, making decisions over areas of the business that they know absolutely nothing about.

It's not an MBA cult problem, but it is a management-academia problem. Universities provide classes about management and business without focussing on the actual business part of businesses. If you want to succeed, domain knowledge will almost always be the most important thing, and business and management schools basically brush this to the side as an afterthought.