Firm, but partial, disagreement.

People, especially in remote jobs, benefit from being organized into groups intentionally, with distinct rituals that enable them to operate effectively while they get to know each other better. Another person needs to design and oversee all that.

While you can provide templates for that structure that allow oversight to scale so that one person can oversee larger groups, that tends to be more effective in non-remote, and more predictable, work environments. Modern software development is very little of that.

I don't have much in-person experience with middle management in contexts outside of software development, and I suspect there are some opportunities to use AI to bring engineers closer to customers.