This is my experience as well. In most companies I've worked at (non-FAANG) the product team just isn't really large enough to support a more variable career chart. You have 8-10 PMs. You promote 1 to manager and another to principal. So does the one manager have 9 reports? You end up with a strange org chart where some director's at facilitating work, and others are doing more strategic stuff. Ultimately some manager is going to be over burdened with days full of 1:1's and that's it.

Interested in hearing other's experience with this!