There are individuals who have good taste for products in certain domains. Their own preferences are an accurate approximation for those of the users. Those people might add value when they are given control of the product.
That good taste doesn't translate between domains very often. Good taste for developer tools doesn't mean good taste for a video game inventory screen. And that's the crux of the problem. There is a segment of the labor market calling themselves "product manager" who act like good taste is domain independent, and spread lies about their importance to the success of every business. What's worse is that otherwise smart people (founders, executives) fall for it because they think hiring them is what they are supposed to do.
Over time, as more and more people realized that PM is a side door into big companies with lots of money, "Product Manager" became an imposter role like "Scrum Master". Now product orgs are pretty much synonymous with incompetence.
Taste is pretty transferable, I think what you're talking about is intuition. The foundations of intuition are deeply understanding problems and the ability to navigate towards solutions related to those problems. Both of these are relatively domain-dependent. People can have intuition for how to do things but lack the taste to make those solutions feel right.
Taste on the other hand is about creating an overall feeling from a product. It's holistic and about coherence, where intuition is more bottom-up problem solving. Tasteful decisions are those that use restraint, that strike a particular tone, that say 'no' when others might say 'yes'. It's a lot more magical, and a lot rarer.
Both taste and intuition are ultimately about judgment, which is why they're often confused for one another. The difference is they approach problems from the opposite side; taste from above, intuition from below.
I agree with your assessment otherwise, PM can be a real smoke screen especially across domain and company stage.
> There is a segment of the labor market calling themselves "product manager" who act like good taste is domain independent
That’s definitely one of the biggest problems with product management. The delusion that you can be an expert at generic “product”.
We used to have subject matter experts who worked with engineers. That made sense to me.