The engineering team pushed for "quiet private space". We avoided asking for "offices" so that the focus was on what sort of environment we needed, and didn't jump straight into the status and/or cost issues.
It never happened.
The main reason wasn't cost savings (though that was definitely a factor) or management paranoia (which wasn't too bad) or status/ego. It was simply a total failure to understand the process of software engineering, despite being told by the people who were employed to do that job.
The people planning the offices were from a sales background. They were extroverts. They hated quiet spaces. They'd walk into the office and immediately start up some useless conversation that broke everyone's concentration. No matter how many times we tried to explain to them that we got far more work done if they'd just shut the f* up (we'd usually put it more politely than that), they'd keep on thinking that he most important thing was to have a "cool", "vibrant" space and, to them, that meant open-plan and loud.