Recently I interviewed with a company that had promoted their Senior Dev into a management role.
When a company VP emailed this guy to say a website form wasn't working, costing the company tends of thousands of dollars every day it was down, his response was, "Thank you for alerting me to this situation. I will process your request and respond within 2 business weeks."
Obviously, they'd taught him that boilerplate to help him adjust to interfacing with the business, but he lacked the common sense to realize the house was on fire.
They also said he preferred honing his coding skills and being perceived as a 'master developer' but couldn't quickly produce a list of in-flight projects, and that things were way behind schedule.
Having a bad manager who's a business type does not mean you don't need managers or all business types are bad managers. I mean, what's the sample size you're working off of? Less than 10?
I know it's unpopular on HN and elsewhere to stick up for business types at the perceived expense of engineers but managing people is a very hard thing to do, and the skills that make a great engineer too often make for bad middle-management, IMHO.