Note that this was most of the purpose of the Fellows program in the first place -- [was] to help sort/develop those people into useful roles, including replacing existing management

FWIW, I never knew the purpose of the VF program was to replace existing SI management. And I somewhat doubt that you knew this at the time, either. I think you're just imagining this retroactively given that that's what ended up happening. For instance, the internal point system used to score people in the VFs program had no points for correctly identifying organizational improvements and implementing them. It had no points for doing administrative work (besides cleaning up the physical house or giving others car rides). And it had no points for rising to management roles. It was all about getting karma on LW or writing conference papers. When I first offered to help with the organization directly, I was told I was "too competent" and that I should go do something more useful with my talent, like start another business... not "waste my time working directly at SI."