It makes a lot of sense if you can afford it.
This goes all the way back to his early days (I think I remember a scene about this in The Pirates of Silicon Valley), but also reportedly multiple teams were building very different original iPhones
I think its easier to adjust pure software iteratively than hardware. So with hardware, it makes sense to have different teams working on similar but different things because variations of ideas need to be fleshed (and thoughts that spawn off those ideas) and it can be hard for one team to do this iteratively.
If you're right and this is where it came from, I think largely pure software teams doing this are wasting resources, but if its hardware I don't agree its wasteful
I ran into this a couple years ago with partially duplicating a service that existed under another SVP org. It didn't feel good at the time but in hindsight it was probably less effort and higher chance of success than trying to align priorities across SVP orgs and making their thing work for our slightly different use cases.