I don't think they should be letting Managers or Engineers run things. I think they need to have... I'm not sure of the title... lets call them Vision Carriers. In the video game industry we call these people Creative Directors.

These vision carriers need to understand the product they are building and the people who will use it.

They don't need to be good a managing people or budgets, they don't need to write code. They need to understand what is good and what is bad and they need to be able to clearly communicate it to the team.