That's a fine thesis, though I do think that software is one of those areas where a maker can under some circumstances, potentially have a vastly more powerful impact on an organization than a manager.
Opportunities are fewer and the competition level is high, though. To really harness this, you probably have to either become a founder who writes an early version of a product (very difficult), or alternatively advance along one of the technical track ladders that exist in some big tech companies (they exist, but far fewer opportunities and intense competition). There's a chance you could pitch a breakthrough product, but many (not all!) organizations seem strangely hostile to this.
So I do agree with you that going into management does offer greater opportunity for promotion and increased compensation. I disagree your value as an individual contributor is necessarily limited though, since a technically talented developer with a strong business sense can produce unreal value, sky is the limit on that combination.