It's not healthy for the organization as a whole if the only point of contact between "the business" and the developers is enshrined in the Product Owner. It is however very amenable to empire building and short-term cost savings, both of which are examples of a manager favouring their own interests over that of the organization. In short, Scrum is most useful for those for whom a dysfunctional organization is their goal. That the turkeys (devs) are voting for Christmas themselves is the icing on the cake.