The "War Room" idea promoted by Scrum Masters and Project Managers has a similar downside. War Rooms take your best people and force them to answer questions all day long posed by your least-knowledgeable people. War Rooms are one of the surest ways to reduce the morale and productivity of your best people.
However, if you require real-time visibility of project status, you want all of your people to be easily interchangeable and replaceable, and you think that knowledge concentrated in a few good people is risky, then the War Room is for you.