That seems a little extreme. I have seen performance reviews used correctly to help engineers to improve on areas that they were lacking. And it works. Some people needs to improve communication skills, or have some blind technical spot. Doing that makes them way better, and I have seen people getting better jobs after improving (inside and outside the company).
But I agree that any tool used wrongly can be replaced by something simpler that cuts to the chase and delivers on what management is really interested in. And in this case has nothing to do with improving employees performance.