Interesting take.

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Or optimisation is going on at a different point in the company.

Or it is as obvious as it seems and sanity isn't a property of management structures.

Come to think of it it's not necessarily even a property of any individual who participated in the creation of that structure. An idiot who's read The Effective Executive and How to Win Friends and Influence people should be a darned effective manager - but they're not necessarily very intelligent. Similarly you can gradually converge on sane solutions without thinking anything through very far by applying fairly basic procedures, or even just being subject to selection pressures.

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You need to decide which good things you're going to assign the most resources to, or in what order you're going to do them, or have a list of very general priorities that you're going to pass off to some other system in the company that will give you a similar sort of output. But however you do it, focusing isn't as simple as saying no - or even as saying no to the right things. You'll exclude some things by default but knowing when to say 'let's see' and how strongly to say yes is also very useful.