"This was my first lesson on how focus on tactical goals and metrics can fundamentally screw up the long term vision."
I don't get how you take that away from this - this is a lesson in how bad managers who refuse to do what is asked, and apparently have no accountability, can screw up the system.
Stack ranking may be good or bad, but if your managers are working around the system, and nobody is holding them accountable for it, that's a separate, and honestly bigger, problem.
If they actually did what was really being asked (instead of trying to work around it), either
1. it would work, and the company would be better off.
2. it would fail miserably, and the company would either stop doing that (and be better off) or go bankrupt (and we'd all be better off because it would be an object lesson).
The reason this went badly is precisely because of a lack of real accountability, not because of stack ranking itself.