The large organization also breeds more selfish behavior. When you see clear misbehavior near you, and you know reporting it will achieve nothign but get you in trouble, then it's difficult to behave well yourself. Eventually the large organization is just layers upon layers of misaligned incentives. The same complaints people correctly made about the soviet system also applied to the Japanese zaibatsus and the modern US conglomerate. It eventually shows us that the modern product enshittification isn't really a matter of a company maximizing its long term profits, but some middle manager pissing the company reputation away to meet some badly aligned KPI that hands them an extra bonus. And the only time execs are better off intervening is when the product line is already on the brink of being destroyed by competitors. It's principal agent problems all the way down.

From this perspective, the main advantage of technology has been to increase how much a single person can do, leading to more capable small organizations. And this should also make us wonder whether an LLM-heavy org is going to be better or worse aligned than one that has just people and more predictable tech.