That doesn’t mean all organisations work this way (mythically, startups of old didn’t), nor that some leaders can’t manage this tension, but tension it is which means while these leaders will often achieve “better” outcomes (that is, “more good” outcomes with relevance to the area of expertise or craft they’re good at, often but not always with more empathy and better working conditions for those delivering), they’ll also encounter more barriers to progressing to and maintaining positions of power, face greater scrutiny, probably be confused why the organisation around them isn’t understanding or valuing their capability (and spend a lot of time translating to frames they do understand and value), and ultimately greater burnout.
Ultimately I think this depends on management competence and judgement. I also think IC leadership is a critical counterweight to the distortions of empire building that incentivize creating messes. And finally as a competent individual you need the maturity to recognize the difference between unavoidable but tolerable organizational dysfunction, and broken leadership where its impossible to do good work, and hence time to cut bait and leave.
I personally believe it’s lack of good engineering leadership and it’s only getting worse at this point. I’ve experienced a fair share of technical leaders without enough technical background and/or experience - people/leadership skills is equally important imho, but people with both are hard to find (scarce resource) and it seems like it’s often the tech side that gets compromised.
I think one of the reasons is the IT industry is simply growing too fast, meaning we have a very small pool of people with many years of experience and a very large pool of people with less experience (compared to other industries). But we do need technical leaders, hence the compromise (need?) to pick people with less experience. Unfortunately.