I know a number of people who have quit Valve and almost all of them would cite organizational dysfunction as one of the top reasons for quitting.

I don't know whether that is true -- I have never worked there -- and I don't wish to spread any ill rumors about Valve. I'm just saying that I know a bunch of people who have worked there who think the flat thing is one of Valve's biggest problems (another one being the incentive structure; of course these two things go hand in hand).